Macadamia reforms seek to shield farmers from brokers, boost earnings

Beatrice Gathigia, a macadamia farmer from Gatitu Village in Nyeri, on March 2024. [File, Standard]

Macadamia farmers are set for a major reprieve following the government crackdown on brokers, with new measures aimed at boosting earnings, strengthening cooperatives and stabilising market access across key producing regions.

The government, through the Ministry of Agriculture, has announced plans to compel farmers to join Saccos and cooperative societies in a bid to eliminate middlemen who have been buying macadamia nuts at throwaway prices.

Currently, processors purchase the nuts at about Sh100 per kilogramme, while brokers offer farmers as little as Sh30, significantly cutting their profits.

To cushion farmers further, the ministry says it will intervene in the market if processors fail to absorb all the produce during peak seasons.

Under the proposed arrangement, the ministry will “open a window” to facilitate the purchase of macadamia nuts, ensuring farmers are not left with unsold stock or forced to accept low prices.

The reforms come amid a broader push to revitalise agriculture in Nyeri County, with parallel efforts targeting coffee production through seedling distribution, input subsidies and improved farmer organisation.

Speaking at Gachatha Coffee Factory during the distribution of coffee seedlings, Agriculture Cabinet Secretary Mutahi Kagwe said the government is also planning to establish a research centre in Nyeri to support farmers with innovation, quality improvement and access to better markets.

“We want to start a research centre that will benefit the people of Nyeri and neighbouring counties, especially in high-value crops and livestock,” said Kagwe.

The CS emphasized that the formation of cooperatives will be key in protecting macadamia farmers from manipulation and ensuring that they have stronger bargaining power and direct access to processors.

“We cannot continue allowing a situation where a farmer toils for years only for a broker to walk in and dictate prices. When you are organised into strong cooperatives, you gain the power to negotiate directly with processors, you gain transparency in pricing, and you eliminate exploitation,” he said.

“As government, we will support these cooperatives to ensure they are efficient, accountable and truly serve the interests of farmers, so that every kilogramme of macadamia reflects its true market value and benefits the person who produced it," he added.

At the same time, the CS lauded Gachatha Coffee Factory for being recognised among the best quality coffee producers in the country, saying it reflects the potential within the county’s coffee sector.

"Nyeri will receive 200,000 coffee seedlings targeting top-performing factories in every constituency, with leading factories set to receive up to 50,000 seedlings each, while the government plans to distribute up to one million coffee seedlings by the end of the year," he said.

Kagwe urged farmers to only purchase seedlings from licensed dealers to ensure quality and improve yield.

"The government confirmed that the fertiliser subsidy programme will continue, but only registered farmers under the Kenya Integrated Agricultural Management Information System (KIAMIS) will access it through a voucher system," he said.

The CS warned cooperative leaders against financial mismanagement, saying the government will no longer absorb unsustainable debts in the tea, coffee and sugar sectors.

He said that some cooperatives had borrowed beyond their capacity, accumulating liabilities that cannot be properly audited, and stressed the need for stricter financial discipline and accountability among factory directors as the government shifts away from reliance on state bailouts.

“The government does not have money for endless debt write-offs. Some of these debts cannot even be audited because they were borrowed beyond capacity,” he said.