The value of exports from shelled macadamia nuts declined by 69 percent to Sh5.8 billion from Sh18.7 billion.
A report by Macnut Association of Kenya reveals shelled macadamia nuts dropped significantly compared to the wet-in shell macadamia nuts threatening livelihoods of the many farmers who depend on the crop.
Additionally, counties revenue from macadamia nuts indicate earnings fell 13 percent to Sh2.66 billion from Sh2.79 in 2022.
Murang’a led in macadamia revenues at Sh666.48 million, followed by Meru (Sh451.82 million) and Embu (Sh320.22 million).
Other counties with notable revenues include Kiambu at Sh306.3 million, Kirinyaga (Sh258.06 million), Trans-Nzoia (Sh192.48 million) and Nyeri (Sh156.89 million).
In the past few years, the global macadamia industry has been encountering unprecedented low and fluctuating prices, which adversely impacted the local performance.
This comes at a time when there are ongoing tussles between the government of Kenya, processors and farmers following a State directive banning the export of raw macadamia.
Processors have come under increased competition for raw nuts from Chinese buyers who took advantage of a window opened by the government allowing shipping of unprocessed macadamia to mop up supplies from farmers.
Section 43 of the AFA Act of 2013 prohibits the export of raw macadamia, except with the written approval of the Agriculture Cabinet Secretary.
“The waiver to the ban of unprocessed macadamia exports could jeopardise the stability and profitability of the local processing sector, introducing competition with unprocessed exports which undermines profitability for Kenyan processors due to lack of raw materials.”
Further, the report notes, far reaching consequences arise following exportation of raw nut-in-shell macadamia nuts.
For instance, the shift towards exporting raw macadamia nuts has led to the closure of five processing companies with more looming.
Such a trend is an indicator of having more than 30,000 jobs being lost primarily targeting the youths engaged in the processing value chain.
According to the report, in 2023 there were 130,270 jobs, however by October 2024, only 94,760 posts were recorded indicating shrinking of slots in Kenya’s macadamia sector.
