Kenya’s macadamia export ban sparks industry divide

KENYA – Kenya’s macadamia industry is at a crossroads following the government’s decision to reinstate a ban on the export of unprocessed nuts. 

The move, which came into effect on November 2, 2024, aims to bolster local processing, enhance farmer earnings, and protect the sector’s long-term sustainability. However, tensions are mounting as industry players voice conflicting views on the policy’s impact.

Kenya ranks as the fourth-largest producer of macadamia nuts globally, holding a 13% market share. 

The crop is a vital source of foreign exchange, employment, and income for thousands of farmers. In 2023, the country’s production stood at 45,000 metric tons of nut-in-shell (NIS), with projections indicating an increase to 63,000 metric tons by 2027.

The reinstated ban aligns with the government’s long-standing objective to shift focus towards value addition, ensuring that more of the nut’s economic benefits remain within the country. 

Proponents argue that local processing creates jobs, strengthens domestic agribusinesses, and enables Kenya to command better prices in global markets.

Concerns over industry integrity and environmental impact

The macadamia industry has faced scrutiny over irregularities, including underreporting of export volumes and the sale of substandard nuts through collusion between traders and farmers. 

These issues, stakeholders warn, have tarnished Kenya’s reputation in international markets and led to reduced earnings for farmers.

Environmental factors have also played a role in justifying the ban. Drying unprocessed nuts for export has been linked to deforestation and ecosystem degradation, raising sustainability concerns. 

“The environmental impact of exporting unprocessed nuts is alarming,” Jane Maigua, Chairperson of the Macadamia Nut Association of Kenya (MACNUT), emphasized the necessity of maintaining the restriction.

MACNUT has been actively working with the government to support farmers through direct sourcing arrangements, training, access to high-yielding seedlings, and credit options. 

According to Maigua, upholding the export ban could see the macadamia sector generate over US$80 million annually for the Kenyan economy.

Tensions escalate over export certifications

Despite the push for local value addition, some farmers and exporters argue that the Agriculture and Food Authority (AFA) has failed to facilitate a smooth transition. 

The Nut Traders Association of Kenya (NUTAK) has accused the regulatory body of failing to issue mandatory export licenses, leaving traders in limbo.

“Tens of containers of macadamia nuts are stranded in warehouses,” said NUTAK Chairman Johnson Kihara. 

He warned that prolonged delays could result in lower farm gate prices and substantial losses for both traders and farmers.

The controversy intensified when the High Court, on February 18, 2025, extended an earlier order permitting the export of in-shell macadamia nuts. 

The ruling followed a petition by Eric Mbaabu Mwirigi and Edenswin Traders Limited, who challenged the government’s harvesting ban imposed between November 2, 2024, and March 1, 2025. The restriction was intended to curb the export of immature nuts and stabilize the sector.

Balancing growth and regulation

The government remains firm in its stance, maintaining that value-added processing will secure better returns for the industry in the long run. 

However, opposition from traders and certain farmers highlights the complexities of policy enforcement in an industry where multiple players have competing interests.