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{
    "id": 1526693,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1526693/?format=api",
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    "content": "Mr. Temporary Speaker, Sir, on the issue of the macadamia, this was a quick one by the Hon. Senator. My response is as follows. The current position of the Government on the export of raw macadamia nuts in-shell; will not be allowed. This position is provided for in Section 43 of the Agriculture and Food Authority (AFA) Act 2013 which prohibits export of raw macadamia among other agricultural products except with the written authority of the Cabinet Secretary. In this case, as the Cabinet Secretary, I see no reason why I should remove the prohibition. The implication of continued lifting of the ban on exporting raw macadamia nuts would be inconsistent with the Government policy on the promotion of processing and value addition of agricultural produce. I have just referred about the value chain in tea. Indeed, all products that we are dealing with because it is the only way we will create jobs for our young people. So, the processing of macadamia nuts locally creates jobs in the manufacturing sector and boosts the economy through enhanced foreign exchange earnings. The macadamia industry in Kenya has created approximately 200,000 jobs across the value chain. Continued exports of in-shell macadamia benefits only foreign buyers who use it as a raw material in their manufacturing, which eventually competes with Kenya, particularly for the USA. and other markets. This results to loss of jobs in Kenya's manufacturing sector and reduces export earnings since the in-shell macadamia nuts fetch much lower prices compared to the kernels. Mr. Temporary Speaker, Sir, from July, 2023 to February 2025, for example, the country earned Kshs8.7 billion by exporting some 10,670 tonnes of macadamia kernels against Kshs2.3 billion from exporting 14,384.36 tonnes of in-shell, that is unprocessed macadamias. This translates to an average price of Kshs161 for in-shell macadamia against an export price of Kshs816 for kernels. I have given a table there which establishes what I have just read. I am sure the hon. Senators will see it. So, the country earns a lot more by exporting processed macadamia nuts than by exporting in-shell, raw, unprocessed macadamia. Do we have any plans to lift the ban on the export of raw macadamia nuts to ensure that farmers get competitive prices for their produce from local processors and licensing exporters? It is in the Ministry's interest that macadamia farmers are kept happy and that we ensure that their protection is the only way we can grow the processors because there is no processing of macadamia nuts if there is no growth of macadamia nuts. Some of the strategies that will ensure that farmers get competitive prices for macadamia nuts are that they be assisted to form cooperatives within their counties or even across counties. Through the cooperatives, they can negotiate with their local processors and exporters. Towards this end, about two weeks ago or so, we had a meeting in my office with macadamia farmers. We agreed on the way forward as far as that process is concerned The electronic version of the Senate Hansard Report is for information purposes only.A certified version of this Report can be obtained from the Director, Hansard and Audio Services,Senate."
}