Macadamia Farmers Face Significant Losses as Export Window Closes

Nairobi:Macadamia farmers are facing substantial losses with over 30,000 metric tons of raw nuts reportedly remaining unsold in stores and on farms. This situation arises as the three-month government-authorized export window closed without providing the expected market relief.

According to Kenya News Agency, the farmers had anticipated that the temporary lifting of export restrictions would open international markets, enhance farm gate prices, and alleviate a glut that has been depressing earnings. However, only 700 metric tons out of the expected 14,000 metric tons were shipped before the window closed on October 10.

The Agriculture and Food Authority (AFA) had permitted exports between July and October but subsequently halted the shipment of the unexported allocation, leaving processors and farmers counting their losses. Mureithi Gichabi, Vice Chairman of the Kenya Macadamia Growers Association, has urged the government to extend the export period to help dealers fulfill their contractual obligations. He criticized the regulator for not facilitating the process, despite exporters incurring costs to prepare the nuts for inspection as per regulations.

Gichabi noted that inconsistent policies and regulatory uncertainty are undermining the multi-billion-shilling industry, with some processing factories facing potential closure. He also criticized the Agriculture and Food Systems Transformation Summit 2026 for not allowing macadamia stakeholders to express their concerns, instead focusing on other agricultural value chains.

Njiru Kathangu, Vice Chairman of the Nut Traders Association of Kenya, emphasized the need for predictable policies, including the regular lifting of the ban on exporting raw nuts to China, to provide farmers with alternative markets. AFA Acting Director-General Calistus Kundu reported that only 700 metric tons had been shipped through the Port of Mombasa by 14 companies by the October 10 deadline.

Macadamia value chain expert Peter Mwangi warned that the current crisis mirrored a similar situation three years ago when excess produce forced farmers to hawk their nuts. Taita Taveta stakeholder Moses Karasha called for amendments to the Agriculture and Food Authority Act to eliminate legal restrictions on exporting raw nuts, arguing that local processors cannot absorb the country’s annual production of about 75,000 metric tons.

Other stakeholders have proposed establishing a government-backed fund, similar to the Coffee Cherry Advance Revolving Fund, to support processors and ensure farmers receive timely payments. In Nakuru, large-estate representative Jacinta Mwai highlighted that more than 5,000 metric tons of nuts are awaiting shipment and urged AFA to extend the export window. She stated that ongoing policy uncertainty is damaging investor confidence and Kenya’s reputation in international markets.

Jane Wambui, a farmer in Murang’a, reported that the market glut has weakened farmers’ bargaining power, resulting in some of the lowest farm gate prices experienced in recent years. Stakeholders are now calling for urgent policy reforms, arguing that without reliable markets and predictable regulations, farmers and investors will continue bearing the costs of a struggling macadamia industry.