Mutahi Kagwe has introduced a minimum purchase price of Sh100 per kilogram (approximately US$0.77/kg) for macadamia nuts, as Kenya steps up efforts to stabilise farmer incomes and bring discipline to the agricultural value chain.

Speaking in Nyeri, Kagwe directed macadamia processors to buy all locally produced nuts at the set price, warning that non-compliance could prompt the government to reconsider restrictions on raw, in-shell exports. The move is aimed at ensuring farmers benefit more fairly from the country’s growing macadamia industry.

The Cabinet Secretary noted that the sector has been heavily affected by intermediaries, with some farmers reportedly receiving as little as Sh30 per kilogram. The new price floor is intended to curb exploitation and restore balance in the market.

“The intention is not to punish processors, but to ensure the farmer is not the weakest link in the chain,” Kagwe said, emphasising that market reforms must prioritise producer welfare.

In parallel, the government is pushing to strengthen cooperative structures to improve farmers’ bargaining power and reduce reliance on brokers. Kagwe stressed that well-governed cooperatives are essential for ensuring fair pricing, better market access and long-term sector sustainability.

He also raised concerns over increasing theft of high-value crops such as macadamia and avocado, warning that such activities undermine agricultural productivity and investor confidence. He described crop theft as a form of economic sabotage that must be addressed decisively.

On financing, Kagwe cautioned against repeated government bailouts of struggling cooperatives without accountability. He pointed to cases where factories had accumulated significant debt without clear records on how funds were used.

Under new regulations, cooperatives seeking credit will now be required to submit structured business plans before accessing loans. Kagwe urged members to strengthen governance and oversight, noting that weak leadership remains a key factor behind the financial challenges facing some institutions.

The measures signal a broader policy shift toward improving transparency, accountability and efficiency across Kenya’s agricultural value chains, while positioning the macadamia sector for more competitive participation in export markets.