Kenya's macadamia nut market woes

Kenya's once flourishing macadamia industry is now facing a looming crisis as Chinese buyers flood the market, leaving local farmers and processors struggling to survive. In a recent interview on CNBC Africa, Jane Maigua, Chairperson of the MACNUT Association, highlighted the dire situation and called for urgent government intervention to save the sector. The decision by the Government of Kenya to allow direct export of raw macadamia nuts was intended to address surplus nuts but has instead led to an overwhelming influx of Chinese buyers, particularly interested in the higher-quality grafted nuts, while neglecting the indigenous varieties. Maigua stressed the urgent need for the Kenyan government to reinstate the ban on exporting both raw and processed macadamia nuts to ensure a sustainable market and to prevent further job losses and factory closures. She estimated that Kenya is losing up to 7 billion Kenyan shillings in potential revenue by not exporting value-added macadamia kernels to diversified markets such as the United States, Europe, and Asia. Maigua also emphasized the importance of providing farmers with extension support and capacity building to enhance productivity and quality, as well as investing in marketing and branding initiatives to expand market reach and command premium prices. The overreliance on Chinese buyers poses a significant risk to Kenya's macadamia sector, as it limits market diversification and exposes the country to price manipulation and potential exclusion as China emerges as a key producer of macadamia nuts. Maigua warned that failing to address these challenges could result in further job losses and economic instability in the industry. She urged the government to prioritize the long-term sustainability of the macadamia sector by promoting value addition, diversifying export markets, and safeguarding the interests of local farmers and processors.