Govt Spokesperson Announces Increased Minimum Prices for Macadamia, 7 Other Products

Kenya’s agricultural sector is experiencing a major boost following the implementation of the Guaranteed Minimum Returns (GMR) policy under the government’s Bottom-Up Economic Transformation Agenda (BETA Plan). The initiative, which prioritises production subsidies over consumption, has significantly increased incomes for farmers and stabilized earnings in key sectors, including coffee, macadamia, milk, sugarcane, miraa, tea, avocado, and leather.

Why This Matters: Farmers, especially those dealing with Macadamia, recently complained of a sharp decline in prices per kilogram, plunging them into losses.

Government Spokesperson Isaac Mwaura, in an address to the press on Monday, noted that Macadamia farmers were among the biggest winners, with prices rising from Ksh24 to Ksh100 per kilogram — a more than fourfold increase. This growth, driven by improved harvest scheduling and market interventions, has helped position Kenya as the world’s leading producer of macadamia nuts.

In the coffee sector, earnings more than doubled, thanks to reforms such as the Coffee Cherry Fund. Farmers now receive an average of Ksh130 per kilogram, up from Ksh50, with payments made directly to their M-Pesa accounts. Similarly, dairy farmers have seen the farm gate price of milk increase from Ksh37 to Ksh50 per litre, offering a lifeline to households that rely on livestock for income.

Sugarcane growers are also seeing gains, now earning Ksh5,300 per metric ton compared to Ksh4,500 previously. For the first time, some farmers are receiving bonuses — a result of improved support to the sugar industry and better enforcement of payment timelines. Miraa farmers have recorded substantial price jumps across all grades, with Grade One now selling at Ksh 1,300, nearly double its former price.

The tea industry is transforming a government-led push for local value addition. Rather than exporting raw leaves, Kenya is now focusing on exporting processed tea, which fetches higher prices and creates more employment along the value chain. Likewise, avocado production has flourished, helping Kenya become Africa’s top exporter through increased support and expanded access to international markets.

The revival of the leather sector is also underway, with strategic investments in local tanneries such as the one in Narok. These efforts are aimed at reducing raw hide exports and enhancing value addition in-country, creating new opportunities in manufacturing and craftsmanship.

By implementing the Guaranteed Minimum Returns policy, the Kenya Kwanza administration is delivering on its pledge to transform agriculture into a driver of economic growth, food security, and farmer prosperity — a concrete realization of its campaign promise: pesa mfukoni.

Catch Up Quick: At the beginning of last month, Macadamia farmers lamented that the product was on a steep downward spiral after a kilogram dropped from Ksh150 to only Ksh90 and continued going down.

The drop was a sharp contrast to the profits the farmers enjoyed last year after a continuous increase improved revenue from Ksh20 per kg to Ksh105.

Over the years, however, farmers have lamented the unpredictable nature of several of the agricultural sectors due to extreme fluctuations of the products.

"The company buying the produce does not have a sustainable and predictable market; they can buy for two weeks then stop," a prominent player in the Macadamia business lamented to the press in 2024.

Gachagua Demands: After his impeachment, Rigathi Gachagua, Ruto's former number 2 turned foe, waged a war against the government's policies, which he argued cost coffee and tea farmers, especially those from the mountain region, their livelihoods.

"The same speed and efficiency that you displayed in the National Assembly to impeach Rigathi Gachagua, use the same to pass the Coffee Bill 2023 to become law," the former DP demanded. The Coffee Bill 2023 was passed last year in the National Assembly.