Macadamia farmers warned against brokers as lobby group defends Ksh.100 minimum price

Macadamia farmers across the country have been urged to reject exploitative middlemen as the MacNut Association of Kenya (MACNUT) raised alarm over the resurgence of brokers offering far below the government-set minimum price.

In a statement issued on Thursday, the association said it had received reports from several producing counties of brokers coercing farmers to sell macadamia nuts for as low as Ksh.30 per kilogram, well below the recommended minimum of Ksh.100.

MACNUT Chairperson Pally Muchiri warned that such practices not only undermine farmer incomes but also threaten the long-term sustainability of the sector.

“We want to be very clear: farmers deserve fair, transparent, and predictable pricing for their macadamia,” he said.

“As an association and together with our members, we remain fully committed to the Ministry of Agriculture’s minimum price of Ksh.100 per kilo. Any price below this is exploitative and does not reflect the value of farmers’ labour and investment.”

The association linked the low-price offers to illegal trade, claiming that some of the same brokers are involved in the smuggling of nut-in-shell (NIS), a practice it says distorts the market and weakens legitimate business.

MACNUT called on the government to intensify enforcement and prosecute those behind the illicit trade, noting that continued smuggling undermines policy implementation and disadvantages compliant farmers and processors.

At the farm level, the association emphasised the need for differentiated pricing based on quality, noting that organic and grafted macadamia should fetch higher prices due to better yields and quality compared to ungrafted varieties.

Farmers were also advised against panic selling, with MACNUT clarifying that the tetraphylla variety is not yet fully mature and will be ready for harvesting in the coming weeks.

The lobby further cautioned against the export of raw nuts, arguing that selling macadamia in shell denies the country crucial value addition opportunities.

“When we export nuts in shell, we export jobs and income that should remain in Kenya,” Muchiri said.

“Value addition at home strengthens our economy, supports thousands of households, and protects farmers from volatile and exploitative markets.”

It also dismissed the notion of a reliable export market for unprocessed macadamia, noting that China - often cited as a key destination - is itself a major producer with sufficient domestic supply, exposing Kenyan farmers to potential price manipulation and rejected consignments.

Despite a soft global market driven by geopolitical tensions and high production costs, MACNUT maintained that it remains committed to protecting farmer incomes and enforcing fair pricing.

The association further announced plans to promote cooperative and aggregation models, similar to those used in the tea and coffee sectors, to strengthen farmers’ bargaining power.

It will also roll out field engagement programmes from May, in partnership with national and county governments, to promote good agricultural practices and address farmers’ concerns.

MACNUT has urged farmers, government agencies, and law enforcement to work together to curb illegal trade, uphold fair pricing, and secure the future of Kenya’s macadamia industry.