Macadamia export controls tested by sophisticated smugglers

Beatrice Gathigia, a macadamia farmer in Gatitu village, Nyeri. [File, Standard]

Kenya’s macadamia sector is once again under scrutiny after the Agriculture and Food Authority (AFA) reopened the seasonal harvesting and trading of domestically produced nuts, effective February 1, 2026.

The reopening comes against a backdrop of persistent smuggling, weak enforcement, and global market distortions that have turned Kenya into a soft target for illegal exporters, particularly those linked to Chinese buyers.

Last week, a Chinese businesswoman, Chen Fang, was fined Sh250,000 by a Mombasa court after pleading guilty to smuggling 2,159 bags of unprocessed macadamia nuts to China. The consignment had been fraudulently declared as tarpaulin destined for Maputo, Mozambique. Senior Resident Magistrate Odera Green ruled that failure to pay the fine would result in a one-year jail term.

Investigations revealed that Fang forged customs entry numbers for four consignments lodged on behalf of DLI International Trade Company Limited. The offence, committed on April 16, 2025, violated Section 203(b) of the East African Community Customs Management Act (EACCMA) and exposed just how easy it is to bypass Kenya’s export controls.

Last harvest season, a sophisticated smuggling network involving rogue Kenyan traders and Tanzanian government officials was exposed following the interception of two shipments of in-shell macadamia nuts at the Taveta–Tanzania border on June 19, 2025. Smugglers have been exploiting porous borders to ship raw nuts out of the country through Tanzania.

At the heart of the problem is Kenya’s ban on exporting in-shell macadamia nuts—a policy designed to promote local value addition, protect domestic processors, create jobs, and prevent the export of immature nuts. Ironically, this well-intentioned restriction has created lucrative incentives for smuggling.

Unscrupulous traders, often operating in networks linked to international buyers, exploit porous borders, weak surveillance, complicit brokers, and false customs declarations to move raw nuts out of the country. China remains the only major buyer of unprocessed Kenyan macadamia, making it the primary destination for these illegal shipments.

Industry stakeholders warn that the damage goes far beyond lost revenue. Premature harvesting and illegal exports severely compromise kernel size, oil content, and shelf life—qualities that define Kenya’s reputation in premium international markets. Farmers who follow proper harvesting schedules are punished with lower prices, while illegal traders reap quick profits.

The seasonal reopening follows a tightly enforced closure from December 1, 2025, to February 15, 2026, aimed at protecting nut quality and Kenya’s global standing.

“The controlled seasonal window is aimed at protecting nut quality, discouraging premature harvesting, and safeguarding Kenya’s reputation in the international macadamia market. Poor handling and early harvesting have in recent years led to reduced kernel quality, lower oil content, and increased rejection of Kenyan nuts in export markets,” AFA Director General Bruno Linyiru said in a statement announcing the opening of the harvest season.

Jane Maigua, Chairperson of the Macadamia Nuts Processor Association of Kenya, said in an earlier interview that the situation had become perverse. Chinese buyers, she noted, use advanced technology to assess nut quality and routinely reject immature consignments.

“The irony is that many of these rejected nuts end up with local processors,” Maigua said. “When we receive immature nuts, yields drop, oil content suffers, and the product becomes less attractive to our export markets. Everyone loses, from the farmer to the processor.”

During the closure period, AFA intensified maturity surveillance across major growing regions. Inspections conducted between January 19 and 23, 2026, revealed stark differences: nuts in lower-altitude coffee zones had largely matured, while those in higher-altitude tea-growing areas remained immature and required more time on the trees.

“Patience is key,” said Elias Marete, a farmer from Embu. “Middlemen offer quick cash, but harvesting too early means smaller kernels and less money in the long run.”

Yet financial pressure continues to push many farmers into early sales, reinforcing the smuggling cycle and eroding Kenya’s reputation as a reliable supplier of premium nuts.

In reopening the season, AFA has promised tougher enforcement, closer collaboration with county governments, and strict penalties for those found  trading in immature nuts, including exclusion from future seasons.

“Kenya cannot compete globally unless everyone in the chain aligns,” Maigua said. “Quality must come first, or we will keep losing ground to our competitors.”