Kenya Declines to Export Raw Macadamia to China Despite Tariff Threats

Agriculture Cabinet Secretary Mutahi Kagwe on Saturday affirmed that Kenya will not lift the ban on the export of raw macadamia to other countries, despite threats from China.

Speaking after conducting a tour of miraa farms in Central Kenya, Kagwe maintained that Kenya will not lift the ban, as the country seeks to ensure the value addition of macadamia nuts before they are exported to foreign countries.This is despite China threatening to impose new trade tariffs on Kenyan agricultural exports to the Asian market.

According to Kagwe, the government took the policy shift to spur the local economy by creating jobs for the youth in the processing of the nut. 

''We maintain that we do not want to export raw macadamia to China. So even if they put tariffs or no tariffs, that does not matter to us. We want to do the processing in Kenya," Kagwe stated. 

''I want to thank the farmers because it is because of their interventions and that of the government that we are now buying macadamia oil for cooking purposes. It is one of the best oils.'' 

The CS maintained that the government will not cave into the tariff pressures mounted by foreign trading partners, among them China, to lift the ban on the exports of raw macadamia.

The entire industry is useful to us, and so it does not matter who is putting tariffs. Our position is that we do not want to export them that way," he added.

Kenya's macadamia industry, which exports 95 per cent of its production, is currently facing price instability due to global market conditions, with farm-gate prices dropping significantly. 

Last Friday, China responded to the escalating macadamia export tensions by granting Zambia zero tariffs on macadamia exports, signaling a move to fill the gap left by its ban on raw nut imports from Kenya.

Kenya is among the top global producers of macadamia nuts, ranking third after South Africa and Australia. In recent years, China has emerged as a major importer of Kenyan macadamia, particularly favouring raw, in-shell nuts.

In December 2024, the government temporarily lifted the ban on macadamia to allow the farmers, through their association, to clear the existing stocks. 

In the first half of 2024, the value of kernel exports from Kenya reached Ksh3.3 billion (USD25.63M), significantly lower than previous years when Kenya exported processed kernels worth Ksh6.9 billion (USD53.59M).  

The loss in revenue due to raw nut exports is estimated at over Ksh6.5 billion (USD50 million).