Farmers and processors in Kenya’s macadamia sector are once again at the centre of a government push aimed at stabilising prices and protecting growers from exploitation, as the State moves to tighten controls in the nut value chain.
Speaking during a visit to Nyeri County on Thursday, April 23, 2026, Agriculture Cabinet Secretary Mutahi Kagwe issued a firm directive to macadamia processors, instructing them to adhere to the government’s minimum farmgate price or face a possible reversal of export restrictions on raw nuts.
Kagwe said processors must take responsibility for all locally produced macadamia at the set minimum price of Ksh100 per kilo, warning that middlemen and brokers depressing farm prices will not be allowed to continue operating unchecked.
“Processors must buy all locally produced macadamia nuts at the government-set minimum price of Ksh100 per kilo,” he said, adding that the government will not hesitate to intervene further if the market fails to protect farmers.
He also aimed brokers accused of taking advantage of farmers by offering extremely low prices, in some cases as little as Ksh30 per kilo, a situation he described as unacceptable and harmful to rural livelihoods.
“Brokers exploiting farmers by buying macadamia at as low as Ksh30 per kilo will not be tolerated,” Kagwe warned, stressing that the government’s focus is to ensure farmers earn a fair return for their produce while supporting local processing industries.
The CS further cautioned that failure by processors to comply could push the government to reconsider its position on raw in-shell exports, a move that had previously been restricted to encourage local value addition and job creation in the processing sector.
In the broader agricultural push, Kagwe also announced an ambitious coffee sector recovery programme aimed at significantly boosting production from the current estimated 49,000 metric tonnes to 150,000 metric tonnes in the coming years.
As part of this plan, the government will distribute one million coffee seedlings across Nyeri County, alongside an additional 10,000 seedlings earmarked for top-performing coffee factories in each county as an incentive for productivity and efficiency.
He highlighted Gachatha Coffee Factory as one of the standout performers, noting that the factory, which recently paid farmers Ksh155 per kilo, will receive 200,000 seedlings valued at more than Ksh12 million in recognition of its strong output and farmer returns.
“Performance must be rewarded,” Kagwe said, pointing to the need for competition and accountability within the cooperative coffee system to improve earnings for farmers.
At the same time, the CS issued a strong warning over rising debt levels in tea and coffee factories, faulting what he termed as reckless borrowing practices that have left many cooperatives financially strained.
He noted that the government could no longer continue absorbing or writing off debts without clear accountability measures in place, saying future support would depend on sound financial planning.
“Factories seeking loans must now present clear business plans,” he said, insisting that financial discipline is now a key condition for any future government-backed support.
On infrastructure and long-term agricultural development, Nyeri County also received a major boost after Governor Mutahi Kahiga allocated 20 acres of land to the Kenya Agricultural and Livestock Research Organisation (KALRO) for the establishment of the county’s first agricultural research station.
The allocation also includes land for the Kenya School of Agriculture and the Kenya Plant Health Inspectorate Service (KEPHIS), paving the way for a consolidated agricultural innovation hub in the region.
Kagwe said the planned research station would play a central role in improving crop and livestock productivity, supporting scientific innovation, and strengthening Kenya’s long-term food security agenda.
He added that closer collaboration between research institutions, farmers, and county governments will be key in addressing challenges facing agriculture, from low yields to climate-related production pressures.
The developments signal a renewed push by the government to reorganise key cash crops like coffee and macadamia, while tightening regulation in order to protect farmers and boost Kenya’s position in global agricultural markets.
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