Kenya’s Macadamia and Avocado Sectors Grapple with Policy Shifts Amidst Global Market Pressures

Kenya’s macadamia and avocado industries, once celebrated for their robust contributions to the nation’s economy, are currently navigating turbulent waters due to recent government policy changes and evolving global market dynamics. These developments have sparked widespread concern among farmers, exporters, and industry stakeholders, who fear the long-term implications for their livelihoods and Kenya’s standing in international markets.

Macadamia Industry: Striving for Value Addition

The macadamia sector, involving over 200,000 smallholder farmers, has experienced significant fluctuations in recent years. In 2023, the Kenyan government temporarily lifted a longstanding ban on raw macadamia nut exports to alleviate a surplus and declining farm-gate prices, which had plummeted from KSh 180 per kilogram in 2019 to as low as KSh 30–40 by early 2023.

However, this move led to unintended consequences. The influx of raw nut exports primarily benefited traders, resulting in reduced availability for local processors and a decline in processed kernel exports. Consequently, in November 2024, the government reinstated the ban on unprocessed nut exports to promote local value addition, job creation, and higher revenue generation.

Jane Maigua, Chairperson of the MACNUT Association of Kenya, emphasized the importance of this policy, stating that exporting raw nuts primarily benefits traders and leads to limited job opportunities and revenue losses. She highlighted that local processing not only creates employment but also enhances Kenya’s reputation in global markets.

Avocado Sector: Balancing Quality Control and Market Access

Kenya’s avocado industry, a leading fruit export sector, has also faced challenges due to stringent government regulations aimed at maintaining quality standards. In October 2024, the Agriculture and Food Authority (AFA) suspended maritime exports of Hass, Pinkerton, Fuerte, and Jumbo avocado varieties, citing insufficient volumes of mature fruit and the need to prevent the export of immature produce.

While these measures aim to uphold Kenya’s reputation in international markets, they have disproportionately affected small-scale farmers and exporters who rely on cost-effective sea freight. The high costs associated with air freight have led to reduced profit margins and limited market access for these stakeholders.

In response to industry concerns, the AFA announced the resumption of sea shipments for Fuerte and Pinkerton varieties in February 2025, following assessments indicating sufficient volumes of mature fruit. However, restrictions on Hass avocado exports by sea remain in place, with only large farms possessing adequate volumes permitted to export under strict inspection protocols.

The challenges faced by Kenya’s macadamia and avocado sectors underscore the need for comprehensive strategies that balance quality control with market access and economic sustainability. Stakeholders advocate for policies that support local processing, provide training and resources to smallholder farmers, and enhance infrastructure to facilitate efficient export logistics.

As Kenya continues to position itself as a key player in global agricultural markets, fostering collaboration between the government, industry associations, and farming communities will be essential to ensure the resilience and growth of these vital sectors.