A farmer displays macadamia nuts in Nyeri. Kenya is the fourth-largest producer of the cash crop after Australia, South Africa and Hawaii. Photo/FILE
What you need to know:
Wondernut International plans to venture into cooking oil industry with Sh250m plant in EPZ.
The proposed plant with a capacity of 1,000 kilogrammes of nut oil per day is expected to significantly increase the firm’s exports to Australia, Europe and US.
Wondernut initially opened a Sh350 million plant for processing macadamia nuts in April with a capacity of 12,000 tonnes per year but it has been hit by inadequate nut supply from farmers.
Export-focused firm Wondernut International plans to install a second oil extraction plant in Athi River in a move expected to open a new market outlet for macadamia farmers.
The firm, which is based at the Export Processing Zone in Athi River, said that the Sh250-million plant would be completed by October and would enable it to enter an industry which already has four established players.
The proposed plant with a capacity of 1,000 kilogrammes of nut oil per day is expected to significantly increase the firm’s exports to Australia, Europe and US.
Wondernut general manager Maxwell Lumbasi said that the proposed plant would employ up to 100 workers.
“We look to start extracting macadamia nut oil in the next two months for export,” he said on Wednesday during a tour of the firm’s premises.
The company, however, faces biting shortage of nuts that has forced established exporters to offer farmers various incentives in the last two years.
Wondernut initially opened a Sh350 million plant for processing macadamia nuts in April with a capacity of 12,000 tonnes per year but it has been hit by inadequate nut supply from farmers.
Macadamia growing regions include Baringo, Meru, Nyeri, Kitale, Kiambu, Kirinyaga, Embu, Bungoma and Taita Taveta — the largest grower in the country. Farmers said the five years macadamia nut takes to mature prevents many growers from cultivating it.
Apart from use in manufacture of cooking oil and body lotion, macadamia nut is a key ingredient in cakes, biscuits and other snacks.
Although farm-gate prices fluctuate, processors are currently paying Sh130 per kilogramme of raw nuts.
Nut Processors Association chairman Charles Muigai said that the rise in prices of the commodity was due to a government ban on export of raw macadamia nuts in 2009.
At the time, a kilogramme of the nut used to fetch as low as Sh30. The move was meant to lock out middlemen who exploited farmers.
Kenya produces 27,000 tonnes of macadamia nuts per year, making it the fourth largest producer globally after Australia, South Africa and Hawaii.
“There are about two million macadamia trees in Kenya. We will support farmers through extension services and supply of seedlings to double the number by next year,” said Mr Muigai.
Other nut processors include Jungle Nuts, Kenya Nut Company, Equatorial Nuts Processor Ltd and Afrimac.
By choosing to set its business within the EPZ Wondernut expects to enjoy a 10-year corporate and withholding tax holiday, value added tax and stamp duty exemptions and speedy utility (water and electricity) connections.
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