Kenya macadamia farmers prepare for zero-tariffs

Editor's note: This series explores how China's zero-tariff policy for 53 African countries set to take effect May 1, is reshaping trade opportunities across the continent. In this episode, macadamia farmers in Kenya look to a new Chinese market as a chance to stabilize incomes and expand exports.

Kenya's macadamia farmers are eyeing new opportunities in China after Beijing scrapped import tariffs on goods from 53 African countries, a move set to reshape trade flows for one of the country's key export crops.

The policy previously subjected Kenyan macadamia to a 12% import duty at Chinese ports, a barrier farmers and exporters say limited their competitiveness in the fast-growing Asian market.

Kenya is the world's third-largest producer of macadamia, with more than 200,000 smallholder farmers contributing to an annual output of over 40,000 metric tons, most of it destined for export markets.

In Meru County, one of the main growing regions, farmers say the crop has become a key source of income and a long-term investment in rural livelihoods.

David Ngeera, a farmer in the region, said his experience working with a Chinese macadamia company motivated him to enter production himself.

“I was employed by a Chinese company called AfroChinese Macadamia Company Limited in Meru. I was a broker, and that is when I came to realize that if I plant my own macadamia, I can earn more money,” he said.

However, producers say earnings have been affected by price fluctuations and reliance on middlemen, who control the supply chain between farms and processors.

Samuel Kaume, another farmer, said intermediaries often influence farm-gate prices.

“Middlemen come in between the farms and the processors. At times they bring very little money, and when they come, they can dictate the prices of macadamia.”

Industry players say the new tariff-free access could improve Kenya’s competitiveness in China, but note that regulatory and market structure issues still shape how much farmers ultimately benefit from the policy shift.

Ongezwa Zibi and Gabriel Rotich also contributed to this story.