Crackdown on macadamia cartels key to sector growth

Macadamia produce on a farm after harvest at Gatitu Village in Nyeri on 27 March 2024. [Kibata Kihu/Standard] On 25 May this year, the Agricultural and Food Authority (AFA) issued a statement denying the authenticity of a letter dated 21 May 2025, which purported to authorise the export of raw (in-shell) macadamia nuts. AFA stated that the forged letter bore the name and signature of the Cabinet Secretary, Ministry of Agriculture and Livestock, highlighting the daring lengths to which cartels in the nut sector are willing to go to sabotage reforms. The Authority affirmed that the letter had not been issued through any legitimate channels, insisting that Section 43 of the AFA Act, which bans the export of in-shell macadamia nuts, remains in force. The government imposed this ban in 2009 to create local jobs in the macadamia industry, which is highly labour-intensive. Although the ban has been in place-save for a brief period during the COVID-19 pandemic when it was temporarily lifted to mop up excess nuts-its success remains controversial. Much of the blame lies with the Agriculture and Food Authority (AFA) and its limited capacity to enforce the ban. There are reports of a well-coordinated conspiracy that continues to export raw nuts to China despite the restriction, undermining the original intentions and benefits of the export ban. Using porous borders, raw macadamia nuts are smuggled to China via Tanzania, the world's only importer of in-shell macadamias. Industry players have linked this cartel to Chinese traders based in Kenya. This season, a rogue importer was apprehended, and AFA has since issued a statement claiming some exporters are using forged government documents alleging they have been granted exemptions. This is not new. For instance, in 2020, seven traders of Chinese origin were arrested in Meru for buying macadamia nuts despite the ban. They were accused of operating under various company names to evade tax and conceal their operations. Although the ban was well-intentioned, AFA has struggled to enforce it, largely due to the disintegration and structural disorganisation of the macadamia sector. Over 200,000 smallholder farmers operate independently, without formal producer groups. AFA has issued guidelines for the scheduled harvesting of macadamia nuts to avoid premature harvest and post-harvest losses, but enforcement has been weak. In the absence of strong coordination among processors, farmers, and government, middlemen have taken control of the supply chain. A compromised harvesting schedule enables brokers to access the crop before it matures. Ideally, mature macadamia nuts should fall freely from the trees. Kenya ranks third in global macadamia production, accounting for 13% of the market share on a kernel basis. Annual production rose to 57,000 metric tonnes last year, up from 42,562 metric tonnes in 2022. However, early harvesting forces farmers to shake the trees in a rush to meet cash needs before the proper harvest season begins. Due to advanced quality assessment machines used by buyers, nuts harvested prematurely face high rejection rates-up to 40 per cent. Rather than disposing of these rejected nuts, they are often mixed with genuinely harvested ones, compromising the credibility of Kenya's exports. As a result, some processed macadamia nuts from Kenya have been denied entry into European supermarkets. While the proposed minimum farm-gate price of Sh100 is a welcome move, there is also a need to introduce a grading system. This would incentivise good farming practices and discourage poor crop management. County and national governments, processors, and farmers must all invest in the sector. Currently, investment is low, largely due to a broken-down marketing system. There is a pressing need for infrastructure to handle produce, increased productivity through new varieties, and improved pest and disease control. Contracting farmers directly through processors could also help reduce the influence of brokers. Establishing a macadamia fund would be an innovative step. The government has already created a cherry fund for the coffee sector to support farmers with farm inputs-an initiative the macadamia sector could learn from. The writer is a communication consultant and can be reached at githua.kihara@gmail.com.

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