Kenya is turning its gaze to India as it seeks to broaden export destinations for macadamia nuts and reduce heavy dependence on five long-standing markets. Fresh disclosures from the Agriculture and Food Authority show that Nairobi intends to deepen its presence in India to cushion the sector against volatility in key outlets such as the United States, Germany, Japan, the Netherlands and China.
The regulator revealed that a tailored market entry strategy for India is in the works. It is expected to outline a clear roadmap for the industry, combining business-to-consumer and business-to-business approaches, and anchored in detailed research into Indian consumption trends. A consultant is being recruited to steer the expansion drive.
India is considered an early-stage but high-growth market for macadamias, buoyed by a rising middle class, growing awareness of health-conscious diets and improved affordability following lower import duties. Kenya’s macadamia industry is overwhelmingly export-driven, with about 95 per cent of annual output shipped abroad.
Currently, most Kenyan macadamias head to the US, parts of Asia and Europe, where they are largely used in confectionery and snack manufacturing. Despite strong global demand, the sector faces persistent hurdles, including price swings on the international market, inconsistent production, premature harvesting and pest-related losses.
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Although Kenya ranks as the world’s third-largest macadamia producer, it remains exposed to shocks because roughly three-quarters of its exports are concentrated in just five countries. In 2024, more than 70 per cent of the 20 tonnes of kernels and in-shell nuts exported were purchased by the US, Germany, Japan, the Netherlands and China.
According to the AFA, this concentration leaves Kenyan prices highly sensitive to disruptions in those destinations. Compounding the challenge, much of Kenya’s produce is exported as raw material for further processing abroad, attracting lower prices and ultimately trimming earnings for farmers, processors and the country’s foreign exchange reserves.
The authority notes that despite trade missions and promotional efforts in other markets, awareness of Kenya’s premium macadamias remains limited in many potential destinations. It argues that a research-driven expansion into high-potential, non-traditional markets such as India is essential to reduce exposure, stabilise prices and strengthen returns across the value chain.
