MACNUT advocates for sustainable macadamia sector amidst unprocessed Nut export controversy
MACNUT advocates for sustainable macadamia sector amidst unprocessed Nut export controversy
The MACNUT Association of Kenya has firmly defended the government’s decision to maintain a ban on the export of unprocessed macadamia nuts, countering recent claims made by the Nut Traders Association of Kenya (NUTAK). According to MACNUT, the restriction is essential for sustaining local industries, protecting farmers from exploitation, and maximizing economic benefits for the country.
Kenya is the fourth-largest producer of macadamia nuts globally, commanding a 13 percent market share, equivalent to 7,750 tonnes of processed kernel output. The sector has grown into a key cash crop, significantly boosting foreign exchange earnings, job creation, and household incomes. Today, over 200,000 smallholder farmers are engaged in macadamia farming, with production soaring from 11,000 tonnes of nut-in-shell (NIS) in 2009 to 45,000 tonnes in 2023. The Agriculture and Food Authority (AFA) projects that production could rise by 40 percent to 63,000 tonnes NIS by 2027.
On November 2, 2024, the Kenyan government reinstated the ban on unprocessed macadamia exports to safeguard local processing industries. The move aligns with Kenya’s broader economic goals of enhancing local manufacturing and value addition, generating higher revenues, and opening up diversified markets in Africa, the USA, Europe, Asia, and the Middle East.
“The export of nut-in-shell primarily benefits traders and middlemen, while denying Kenya the opportunity to fully exploit its value chain. This results in lost jobs, reduced government revenues, and unfair treatment of farmers,” MACNUT stated.
Value-added processing within the country ensures job creation for youth and maximizes returns. If upheld, the processing and export of high-quality macadamia kernels and value-added products could inject over USD 80 million (KES 10 billion) into the economy, create 30,000 jobs, and sustain over 200,000 farming households.
Despite its potential, the macadamia industry faces numerous challenges. The illegal trade of raw macadamia nuts is a growing concern, with reports of smugglers operating without licenses. MACNUT warns that such activities could corrupt the supply chain once the buying season begins on March 1st.
Furthermore, the export of raw nuts has been linked to malpractices such as underreporting export volumes, leading to revenue losses for both farmers and the government. Some unscrupulous traders collude with farmers to sell unripe or substandard nuts, which not only hurts Kenya’s reputation in global markets but also reduces farmers’ earnings.
The environmental impact of raw nut exports is another critical issue. The demand for drying unprocessed nuts has led to increased deforestation, posing a severe threat to Kenya’s forests and biodiversity. If not addressed, this could further exacerbate climate change and disrupt local ecosy
The association is collaborating with authorities to support farmers through direct sourcing, training, high-yield seedling distribution, and credit financing. These initiatives aim to boost productivity, eliminate middlemen, and sustain Kenya’s macadamia industry.
The MACNUT is urging the government to stand firm on the ban of raw macadamia exports, ensuring that local processing companies now numbering over 35 continue to thrive. This, they argue, will drive economic growth, create employment, and cement Kenya’s position as a global leader in high-quality macadamia production.
While acknowledging NUTAK’s concerns, MACNUT insists that the long-term success of the sector depends on value addition rather than raw exports. The association looks forward to engaging in constructive dialogue with the government to secure the future of Kenya’s macadamia industry.
As the debate continues, one thing remains clear—Kenya’s macadamia sector stands at a crossroads. The decisions made today will determine whether the industry thrives as a driver of economic growth or continues to suffer from the negative effects of unregulated exports.
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