Kenya's gold chat | Challenges in the Macadamia sector [Part 1]

Added: 2026-05-14

[00:00:04][music] [music] >> Kenya's gold.

[00:00:26]Hello, hello, hello. Good evening viewers and very many for making time to join us this Tuesday the 12th of May on your number one agricultural program Kenya's gold. Now come here it's here on this show every single day [music] of the week we educate you on the many opportunities that are available in the agricultural sector. At the same time we advise [music] the young people to get into the agricultural space and also we put everything on hold to address any problems that our farmers are facing in different parts of the country. And on that note also doubles up as a propagator I'm going to ground is not looking very nice when it comes to my academy of farmers also we've brought a representative of the national government here in studio so that we can help each other find out what is the problem and what are the solutions to the problems that our farmers are facing that and more will be forming a discussion on the program today. Once again a very good evening viewers thank you so much for making time to join us from each part of the country or the world that you are watching us from. My name is Violet Tangina or the international mkulima.

[00:02:27]>> [music] >> Great. Now, before we get into the discussion to scale wakulima wanasema nini kuhusiana na macadamia farming, let us remind ourselves a bit about this agri sector that we will be focusing on on the program today. So, when we are talking about macadamia, this is a crop that falls under the category of nut and oil crops. Now, hizi ni mimea ambazo zinaweza tumika kutengeneza mafuta through value addition. Other nut and oil crops include coconut, cashew nut, simsim as well. Now, when we are looking at the production in the country, for example, in 2025, our local production was at 45,000 metric tons, but the projection that we have as a country is to increase our production to about 63,000 metric tons by 2027.

[00:03:30]Now, this is how our production is looking here in the country. So, when we are talking about the farmers who are making this production happen, we have about 200,000 small-scale farmers. These are the farmers who are supporting the growth of macadamia here in the country, and commonly it is grown in regions such as eastern side of Kenya, central part of Kenya, and Rift Valley as well. When it comes to the varieties they used to grow the indigenous varieties because we are practicing smart agriculture farmers are growing grafted varieties and they include Kiambu 3, Muranga 20, and Kirinyaga 15. So this is some of the grafted varieties in different parts of the country they are growing. Also, you might wonder where do we lie when it comes to the global production of macadamia. As a country we are controlling about 13% of the global market share and some of the leading producers of macadamia in the world include South Africa, we have China and Australia as well, but South Africa is the leading producer of macadamia in the world. So to your value chain. Remember here on Kenya's Gold, we focus on the entire value chain of an agri sector all the way from the farm to the table to value addition to export and more. To your entire process of course our farmers will do the planting and remember to most of them are growing the hybrid varieties. Of course the hybrid varieties have a lot of advantages. For example, they grow very fast and the nut itself has a higher oil content. So after 3 to 5 years of growing the hybrid varieties you'll be ready to start harvesting. The moment it's time to harvest you'll have your macadamia it will have a green on top of it. You have a green macadamia it will within 24 hours so that you do not destroy the quality of your macadamia. After harvesting to go to the aggregators and they sell to the processors and the exporters. So, that is the next step.

[00:05:52]The first thing that they have to do as they process the macadamia is to dry the macadamia.

[00:06:00]The moisture content and by equal is at about 45%.

[00:06:05]So, using technology had a percentage of about 1.5 to 2%.

[00:06:12]Drying is the next thing that happens.

[00:06:15]Once the macadamia goes to the processors, and after that we will crack it. Remember to the tough So, they'll crack it and then now the sorting and grading will happen because at the time we have the nut what we are calling kernel. And then they'll pack.

[00:06:31]And they'll sell and export to different parts of the world. So, that is the value chain of macadamia farming. Now, as we said at the beginning And looking at what the government did for this season, they said that Any locally produced macadamia should not be bought for a price lower than 100 shillings. Now, he said this about 2 weeks ago while in Nyeri County. Take a look.

[00:07:06]If you do not have the capacity, we are going to open the window. So, I'll give them a chance.

[00:07:18]I want you to form societies. You will never be able to get good prices on your own if the processors are not up taking all the macadamia that Kenya is growing.

[00:07:32]I am going to open the window for export.

[00:07:35]All right. There you go. That's the CS of agriculture.

[00:07:43]It shouldn't for anything lower than 100 shillings?

[00:07:46]And in case as a formula circle for us to export the raw nut in shell. And to further this conversation we have farmers here in studio Mr. Nashon Mugikari Busan farmer and propagator as well. We also have Mr. Peter Gishabi Thank you so much. And we have Wilson Chumo.

[00:08:10]Thank you for being with us on the program today. And to represent national government we have the pleasure of having with us Mr. Patrick Karimi who is a deputy director regulation and compliance offer nuts and oil crops directorate.

[00:08:26]for making time to be with us on the program today. So we do want to get down into matters macadamia farming when is it to buy sending SMS our SMS line is 22422 macadamia macadamia the region that you're representing how much are they buying your macadamia for?

[00:08:52]So please send us an SMS line is 224 22 and thank you so much for being with us here on the program.

[00:09:02]Mr. Peter when the process aggregators are coming or the processors whoever comes to buy from the farm So we'll just start with you Mr. Peter.

[00:09:19]Maybe you can also tell the viewers you're representing which part of the country.

[00:09:26]And at how much if you managed to sell to sell.

[00:09:29]Thank you Aurelia.

[00:09:32]Uh my name's uh Peter Mureithi Kinyaga I'm a farmer in Kirinyaga County.

[00:09:39]>> [clears throat] >> Uh and I represent farmers in macadamia growers, Kenya.

[00:09:48]Let me say this year has been very, very bad for the farmers.

[00:09:53]Right now, as at today, we are talking today, the macadamia is rotting in our farms because there is nobody to buy our macadamia.

[00:10:04]We have made a lot of noise, but it appears nobody is listening to to us. All right.

[00:10:11]It's good the minister brought that statement, but up to that time he mentioned that up today nothing has changed. Right. Most of the farmers are just complaining. There are no buyers.

[00:10:30]The ones who are there buying, they are buying at 40 shillings as at today.

[00:10:33]Right.

[00:10:34]So, it is not economical at all.

[00:10:38]If somebody is blowing people to go and harvest the macadamia from the farm because even the money which will be collected will not won't be able to pay for the people who are doing that job.

[00:10:52]>> All right. So, most of the Uh I have over 300 trees.

[00:10:58]And I've done macadamia farming for more than 20 years. All right.

[00:11:06]There is some macadamia I've sold.

[00:11:10]And because there was a company, two companies which were buying direct from farmers. Okay.

[00:11:17]And those companies were uh doing quite well.

[00:11:24]Right now, the last time those companies were buying, they were buying at 130, but they are one they were only buying one variety.

[00:11:33]Integrefolia only.

[00:11:37]So, the tetraphylla variety nobody is buying.

[00:11:42]at the ground.

[00:11:46]Right now, if you can get what you want it's all down rotting.

[00:11:52]Mr. Nashon, coming to you.

[00:12:01]at 130 I can see the chunk of it What is your situation?

[00:12:10]I know you've been a teacher for macadamia for many years. This is a very personal topic to you.

[00:12:18]Number one.

[00:12:22]All right.

[00:12:23]I come from Muranga.

[00:12:26]Mathioya sub-county.

[00:12:29]I'm brought up in a family of macadamia.

[00:12:35]I know the meeting about 220.

[00:12:41]>> [clears throat] >> I like any Okay.

[00:12:52]on daily basis.

[00:12:59]Because macadamia can achieve me is a high quality.

[00:13:07]Number two.

[00:13:10]I can see two Uh-huh.

[00:13:18]So, how come Muranga where you come from?

[00:13:22]They are offering 40 shillings. 40 between 40 to 80 depending on the tetraphylla and the integrifolia varieties. Right.

[00:13:30]All right. Yeah.

[00:13:32]40.

[00:13:34]So, what's going to happen just in case For now, as we try work our way forward, as we try and streamline. I'm not in a hurry. Okay. What happens? Mhm. Uh macadamia, you see, most of the companies they could just measure quantity sell for this year.

[00:13:56]Mhm. Wamejaza. They cannot accommodate more.

[00:13:59]Very soon what I was saying. Right. And it will go down.

[00:14:04]Tukia mwezi wa tano mwisho mwisho ama early June what I was saying to talk about macadamia and it will go 140, 150. All right. So, how long will it take?

[00:14:13]>> It's in a hurry. Okay, good. So, now coming to you, Mr. Wilson.

[00:14:20]How many trees do you have?

[00:14:25]Thank you, Gira.

[00:14:26]Kwajina wilu metaja mimi ni Wilson Chumo.

[00:14:31]Right. I'm a North Rift as a whole. Mhm.

[00:14:37]Mhm.

[00:14:41]Mhm.

[00:14:44]Okay. I'm still collecting my macadamia kama vile bwana Mugambi amesema.

[00:14:48]Uh I don't pick them mine from the tree.

[00:14:56]Right. And these people are lucky maybe they are talking about Mhm.

[00:15:05]Uh it is a new frontier macadamia.

[00:15:07]Right.

[00:15:09]They are macadamia. Okay.

[00:15:13]Right.

[00:15:16]I I'm North Rift. All right.

[00:15:22]Which is true because as we speak I am a I have one acre of macadamia no buyer to date. Nothing from this crop. I am uprooting very soon.

[00:15:40]There's the same sentiment as you do. So I think it's only fair that we come to you Mr. Patrick Karimi deputy director regulation and compliance alpha And we have seen that there's the guaranteed minimum return in a second anyway not less than 100 Kenya shillings. Why are we still having what one and a quarter quinoa as low as 40 30 shillings. Why is that the case now to a meter per was in issue a region that's now is producing a lot of macadamia for me at very difficult. So when the government goes ahead and put implementation such as we are not exporting raw nuts in shell. Like in a circle up and down in a corner sauna.

[00:16:28]What do you have in mind for this farmers? So what happened being a national sugar?

[00:16:33]Thank you thank you citizen TV for inviting us for this discussion.

[00:16:41]My name is Patrick Karimi.

[00:16:44]I'm working with agriculture and food authority which is a national government agency whose mandate is to promote to develop and also regulate the various crop commodities.

[00:17:04]Macadamia being one of them and a key one.

[00:17:09]And actually it is Kenya's board the way this program is known because it's a crop that is a continuously having more area or acreage and production and even the output is increasing year by year such that as we talk now the 2025 statistics which have not been validated Kenya could be the number three producer in the world After China? After South Africa, China and probably Kenya and Australia. They usually outcompete one another but as per the 2024 statistics Kenya was number four but when we validate the 2025 data then we'll be sure whether Kenya will be number three or number four the way it has usually been.

[00:18:14]Um In terms of the pricing and the market every value chain has its has challenges once in a while and this year although we have not validated the information we were we and we owned a meeting with the stakeholders last week on 4th and 5th they give us the feedback the information that they have we are discussing today and we have actually sent a team to the field to confirm the real situation on the ground but maybe this year as you are aware we have the Iran US war that is ongoing it could be one of the issues that could be bringing about the challenge in terms of the market when inflation sets in, even the consumer purchasing power goes down. Right. If you look at in terms even of logistics, Mhm. the street of almost their issues and it's one of the routes that our produce the product goes through because our main destination market is Europe and the USA.

[00:19:52]So those are some of the challenges or logistical challenges even in terms of insurance of the produce. Those are some of the issues that may set in.

[00:20:04]Uh but as a government, we have talked to the farmers.

[00:20:10]We have advised to them to be in associations, to form groups, to form societies so that they have I'm just going to cut you right there, Mr. Patrick. And we we appreciate at least to meet the idea of one of the reasons that could be affecting our market. Of course, we know that there's the geopolitical war in different other countries and we export a lot of our macadamia. The consumption up at Kenya is very very low. So we depend heavily on the export market. So what happens to this farmer? What do you advise them to do?

[00:20:46]100 shillings. Like you want to know more for 30 shillings or 20 shillings or 40 shillings. What are you advising them to do moving forward?

[00:20:58]I want to know that information. So for them they are wondering when I say my EV and that the declaration by the CS was 2 weeks ago. The war, US Israel war has been ongoing for several months now, right? But he made that declaration 2 weeks ago, very much aware that there's still the geopolitical war going on. So, is it that we have not sat down properly to align this to Nakuru to not begin our leader and most of the China and Kuna your Vita Bado. It becomes very confusing to the farmers. So, you'll be helping us understand what you pay for your offer of 20 shillings. Just very briefly before we move to a caller that we have on the line.

[00:21:41]Uh thank you again.

[00:21:43]We are telling them to come into groups, to come into cooperatives. Let them form associations so that they have a bargaining power. The moment you leave the middleman, the off-takers of the macadamia from the farmers, uh when they meet and is organized uh farmer, that's how they end up offering very low prices. But if they came together as a society, as a cooperative, they aggregate their produce so that they have reasonable volumes that the processors can comfortably take the costs and the challenge to come for the produce from the farmers. All right. They actually we are under meeting and with the farmers and the processors. The processors are ready as long as there are some tradeable volumes that the farmers have aggregated and they committed to do that. All right, great. So, Mr. Nashon, are you in a cooperative society?

[00:22:51]Uh we have formed one, but yeah, but it's already When did you form it? Uh we formed it in 2013, County Nuts Cooperative Society Limited. Mhm. But due to some issues, it never picked well. But now we have revived. Okay. It is within next two weeks we shall have an AGM. Okay. So you're reviving your cooperative society.

[00:23:17]>> It's already there. All right, Mr. Wilson, macadamia, are you in a cooperative society? Not really.

[00:23:25]We have a challenge of forming cooperatives in Uasin Gishu. Most of the farmers in Uasin Gishu Mhm.

[00:23:34]Okay.

[00:23:36]Mhm.

[00:23:38]Mhm.

[00:23:41]You know there are two things in cooperative.

[00:23:43]>> Mhm.

[00:23:44]Two challenges in cooperative. One, history of mismanagement in cooperative.

[00:23:48]Mhm. I'm buying buying a challenge what to win cooperative. Mhm. Really [snorts] the compromise of quality of the macadamia. Cuz I take care of my macadamia. What to win a funny cuz macadamia at the end of the day it will mix your macadamia. It lowers the quality and it lowers the price. Mhm. So so we we we are we in fact we are actually actually going to cooperate but we have a forum. Okay.

[00:24:10]>> We have a forum by one and I discuss I discuss money macadamia. All right. But if need be we we are going to form one. And at this point I think there's need to form one.

[00:24:21]Cuz you know Mr. Nashon they're reviving their cooperative society. Maybe just to find out from you, Mr. Peter, do you have a cooperative society?

[00:24:29]Yes, uh we have already formed a cooperative society. Mhm.

[00:24:34]>> [clears throat] >> And as he has mentioned, there are very many challenges.

[00:24:40]>> Mhm.

[00:24:41]Because like now after forming the cooperative Mhm.

[00:24:45]there is a challenge of finance. Mhm.

[00:24:48]This sector most of the buyers come with the cash.

[00:24:52]Mhm. And it will be extremely difficult Mhm.

[00:24:57]to tell farmers to give you the nuts and wait for the payment.

[00:25:04]That will be next to impossible.

[00:25:07]But we are hoping after the cooperatives are in operation we can get the finances so that we can be able to buy nuts to the farmers cash compete with the other peoples in the sector because even if we form a cooperative and we don't have cash to operate we shall be doing zero work. Secondly even if we form a cooperative and there is no market we shall meet a dead end. There is no market. All right, it's great. Well We have one Mr. Mbugua What is the situation in Gatanga? When it comes to macadamia farming You have managed to a market or not?

[00:26:05]Mhm.

[00:26:14]Mhm.

[00:26:18]Mhm.

[00:26:24]Mhm.

[00:26:26]Mhm.

[00:26:39]All right.

[00:26:41]And the previous year when it comes to getting your market are you seeing any difference? Is this year a bit more difficult? Or this has been your situation in Gatanga through and through? Nothing new, same old situation for you as a macadamia farmer. Tofauti iko wapi with the previous years?

[00:27:24]All right. Thank you so much, Mr. Mbugua, for speaking to us. He's giving us the perspective of what is happening in Gatanga. That's another farmer and the situation has been like this what kind of covid so clearly Mr. There's a very big problem when it comes to market. And I got to take away break size like you can when we come back.

[00:27:44]What's the next immediate step of action?

[00:27:51]making plans making plans So [music] what should our farmers do immediately to save what we have as we try and streamline the sector moving forward. [music] That's and more when we come back from this short commercial send us an SMS Our SMS line is 22422.

[00:28:11]Tell us the challenges that you're facing with macadamia farming in your counties.

[00:28:19]exporter >> [music] >> Help us understand that so we can address that with national government that is with us in studio today. See you after this break.

[00:28:36]>> [music] [music] >> Welcome [music] back and thank you so much for staying with us. Today on the program we are addressing the challenge that macadamia farmers are facing across the country and I'll just go straight to reading some of the feedback that we have across our SMS line.

[00:29:13]America but he from I highly support Mr. Muggy. Cannot sell my macadamia at 30 or 40 shillings.

[00:29:22]Please ask the government to chase these brokers who don't buy at farm price at 100 shillings. I have 40 trees and I've sold nothing. We can hear and I say my hi Kenya's gold. I am and talk with you tight at a better in Sagala and I so called but I see you better had to say is he not so good show macadamia young good door to door and one more and I say my I am one of the small scale farmers.

[00:29:45]It's very difficult to form the cooperative society. So that's part of the feedback that we have like in the way I am going to pick you up see me now more than to listen my feedback before we took our first break. When I hear idea and I talk at that cut that he meet you. From where you come from? Are you seeing this as a real problem on ground?

[00:30:03]And you come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here to come here.

[00:30:19]Not to farmers want to approach macadamia. They will approach macadamia.

[00:30:27]The regulator is here. This problem here macadamia I come here to come here to come here to come here.

[00:30:31]They have they have this this problem persistent for long.

[00:30:36]And the and and solution is simple. The regulator is here.

[00:30:39]Just lift section 43. What you make for for now maybe for 1 year.

[00:30:55]Right.

[00:30:56]And there's there's no buyer. Right.

[00:30:58]What we are requesting the government through our regulator, Mr. Patrick.

[00:31:02]>> Yes. Please, sir.

[00:31:04]We lift section 43 for now. Mhm.

[00:31:11]While we are sorting out there the the problem of macadamia. By next year we will be prepared But for now, please, the farmer needs immediate immediate immediate solution.

[00:31:21]Right. Mr. Patrick, I'll come to you. I understand the reason as to why we have section 43 of the AFA Act. P and because of you want to build the macadamia industry here country. Create more employment. We value add our products.

[00:31:35]And we've been talking about value addition for the longest time. And I know that's part of what you want to achieve with macadamia. But from where we sit, looking at the capacity of our farmers, how much they can produce, are you confident with the processors that we have and their processing ability capacity as well?

[00:31:52]All the macadamia from our farmers when they are at optimum production. Is that doable?

[00:32:00]Thank you, Gena, again. Uh I think it is doable because in the previous years except in 2023 after the COVID uh is when we had something close to this. The global market was disrupted.

[00:32:22]Uh and the CS then used his the powers given in the constitution uh to lift the ban on export of in-shell macadamia.

[00:32:34]Uh but as you have rightly put, if you look at the current government manifesto, the bottom-up economic transformation agenda, the area of SMEs, the MSMEs pillar, would want really to promote value addition so that we get good prices, better income for the farmers, improve the livelihoods of the farmers.

[00:33:04]That's why we still would want, unless the situation goes out of hand, that we don't export our raw material because that is exporting jobs. And in terms of the capacity that you have mentioned, we have excess capacity. The processors have a capacity to do 120,000 metric tons in a year. How many processing companies do we have in the country? We have about five registered processing companies in the country. So the capacity is there.

[00:33:42]As I mentioned, >> companies in the country. Yes. And they're able to process a capacity of 120,000 metric tons, but the operating capacity is only around 50 metric tons. 50 metric tons.

[00:33:57]>> Yes, so we have excess capacity. We have excess capacity given that our production was at about 45 45 last year, as I said, data that is not validated is around 51,000. So if that is the capacity we have, Yes. how come out of 10 farmers, nine of them no market. There's somewhere there's a math that is not accurate either from the processing side or from the farmer side.

[00:34:33]None of them 100% of my macadamia has been sold.

[00:34:39]You understand? So, if we have a processing capacity that is able to absorb all that our farmers can produce, why is it that nine out of 10 farmers, if I'm not wrong, Thank you.

[00:34:56]As we started, I mentioned the distortion and sort of what is happening globally currently.

[00:35:04]And then there could be issue of funding the way the farmers mentioned. That's why we are discussing with the financial institutions so that they could avail finances to the processors and the societies that will be formed so that we can off-take the produce. All right, great.

[00:35:29]Are you there?

[00:35:31]Yes, I'm here.

[00:35:57]And the CS made that declaration actually while in Nyeri County. So, you tell me has this been effected in the ground on the ground studio.

[00:36:10]Okay, thank you. Thank you.

[00:36:13]Let me tell you the truth.

[00:36:14]You know I'm here on the ground.

[00:36:17]Here in Nyeri I tell you the truth.

[00:36:29]But you know that Mhm.

[00:36:37]Mhm.

[00:36:45]All right.

[00:36:50]All right.

[00:37:01]that the CS it public domain.

[00:37:05]What are they telling you back? What is their response?

[00:37:12]What does it look like when you try renegotiate with them given that we do have a guaranteed minimum return for macadamia.

[00:37:20]Okay. That's how I agree that you want to say something. Mhm.

[00:37:27]Mhm.

[00:37:39]Mhm.

[00:37:52]All right.

[00:37:59]All right. So, there you go. Mr. Patrick, I'll just come straight to you.

[00:38:02]Can we acknowledge from a government side as regulators that honestly, truly, there's a problem.

[00:38:10]There is a problem.

[00:38:12]Uh I think there is a problem. Okay. But we are as I said, we have sent a a team in the field to confirm. Okay. To confirm if there is a problem. But from the talk with the farmers and those making calls Mhm. I think the situation there's a >> team that you have sent on the ground to go and find out if there is a problem, they're expected to come back to you with feedback within a span of how long?

[00:38:39]Uh when we had a meeting with the processors and the farmers, we gave ourselves 100 days.

[00:38:46]So that we look at the issues, we talk. By the way, we have even organized to meet the middleman, the marketing agent to buy from the farmers. Yeah. So that we can try to enforce that price of 100 shillings. All right. Uh because the issue could be between the middleman and the farmer. All right. So 100 days you get the report. Yes.

[00:39:17]>> All right. Then after that, maybe now we will sit again again as stakeholders and come with a a more concrete way forward depending on the So I I I hear you, Mr. Patrick. My only concern is do those timelines work for our farmers? Can they just sit down with their produce in [music] the farm in Arabica waiting for a report 100 days and more? But we'll come back to you after this break with more.

[00:39:43]Mhm.