KENYA – The macadamia industry in Kenya is facing growing unrest following the refusal of the Agriculture and Food Authority (AFA) to issue vital certifications required for the export of in-shell macadamia nuts.
This action persists despite a court order allowing the export to proceed, leaving farmers and traders concerned about significant financial losses.
According to Johnson Kihara, Chairman of the Nut Traders Association of Kenya, tens of containers of macadamia nuts are currently stranded in warehouses due to the lack of export documentation.
He warned that prolonged delays could destabilize farm-gate prices and lead to heavy losses for farmers and traders.
Legal battle over export restrictions
The dispute stems from a November 2024 petition filed by Eric Mbaabu Mwirigi and Edenswin Traders Limited, challenging a directive by the Ministry of Agriculture to halt the export of unprocessed macadamia nuts.
High Court Judge Lawrence Mugambi had initially suspended the implementation of the directive on December 6, 2024, and further extended the suspension to February 18, 2025.
The court barred the Ministry of Agriculture and the Attorney General from interfering with the rights of macadamia farmers, traders, and exporters, allowing the export of in-shell nuts to proceed until the matter is revisited in February.
Despite these rulings, AFA has declined to comply with the court’s directive.
Mounting tensions
Eric Mbaabu has announced plans to move to court to initiate proceedings against the Cabinet Secretary for Agriculture and AFA’s Director-General for contempt of court.
He emphasized that the regulator’s non-compliance jeopardizes the sector’s stability and violates the proprietary rights of stakeholders.
“The Ministry and the regulator must respect the court’s decision and allow the export of the nuts until the matter is resolved,” said Mbaabu, speaking through his legal representatives, Mbichi Mboroki and Kinyua Advocates.
Kihara echoed this sentiment, urging authorities to facilitate the export process to prevent further damage to the industry.
Economic impact
Kenya’s macadamia sector has experienced a sharp decline in recent years, with kernel exports in the first half of 2024 valued at KES 3.3 billion (US$25.6 million), a significant drop compared to prior years.
Industry stakeholders estimate revenue losses from raw nut exports at over KES 6.5 billion (US$50 million).
The ongoing export restrictions have further strained the sector, leaving farmers and exporters grappling with uncertainty. Stakeholders have called on the Ministry of Agriculture and AFA to prioritize adherence to the court’s orders to stabilize the market.
The case is scheduled for mention on February 18, 2025, when the court is expected to provide further directions.
