CS Kagwe issues ultimatum to Macadamia processors, unveils bold coffee expansion plan

In a sweeping move to protect smallholder farmers and revitalize the agricultural sector, Cabinet Secretary for Agriculture Sen. Mutahi Kagwe has issued a stern warning to macadamia processors over price exploitation while launching a multi-million shilling coffee recovery drive.

Speaking during an official visit to Nyeri County on Thursday, CS Kagwe signaled a “get tough” approach on middle-men and factory mismanagement, while securing a landmark deal for the county’s first-ever agricultural research hub.

The macadamia ultimatum: KSh100 or export reopening

The CS addressed the growing crisis in the macadamia sub-sector, where brokers have reportedly been buying nuts for as low as KSh30 per kilo.

Kagwe directed processors under the Macadamia Association of Kenya to strictly adhere to the government-mandated minimum price of KSh100 per kilo. Failure to absorb all locally produced nuts at this rate will result in the government lifting the ban on raw in-shell exports.

“We will not tolerate brokers exploiting our farmers. The goal is local value addition and job creation, but if processors cannot protect the farmer’s return, we will reopen the export of raw nuts to ensure our people get value for their sweat,” CS Kagwe stated.

Boosting coffee: The road to 150,000MT

Shifting focus to the “Black Gold,” the CS unveiled an ambitious recovery programme aimed at nearly tripling national coffee production from the current 49,000MT to 150,000MT.

As part of this initiative, the Ministry will distribute:

• 1 Million coffee seedlings specifically for Nyeri County.
• 10,000 seedlings for top-performing factories in every county across Kenya.

In a move to reward excellence, Gachatha Coffee Factory, which achieved a record payment of KSh155 per kilo to its farmers, was awarded 200,000 seedlings valued at over KSh12 million.

Crackdown on factory debt and “reckless borrowing”

CS Kagwe issued a sharp rebuke to management boards of tea and coffee factories regarding fiscal indiscipline. He clarified that the era of “automatic” government debt write-offs is over.

To curb financial mismanagement, the Ministry has introduced new stringent lending requirements:

1. Accountability: Factories must account for previous disbursements.
2. Business Plans: No loans will be approved without a clear, viable business plan demonstrating the ability to repay.
3. Governance: Boards will be held personally liable for reckless borrowing that plunges farmers into debt.

Nyeri secures first-ever agricultural research hub

In a historic milestone for the region, Nyeri Governor H.E. Mwalimu Mutahi Kahiga announced the allocation of 20 acres of land to the Kenya Agricultural and Livestock Research Organization (KALRO).

This site will host Nyeri’s first-ever Agricultural Research Station, alongside dedicated spaces for:

• The Kenya School of Agriculture
• Kenya Plant Health Inspectorate Service (KEPHIS)

“This hub will be the engine of innovation for our farmers,” Kagwe noted. “By bringing KALRO and KEPHIS closer to the ground, we are ensuring that livestock and crop productivity are backed by modern science, ultimately securing Kenya’s long-term food security.”

Key Takeaways for Farmers:

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