Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe has intensified government intervention in agricultural value chains, linking market discipline, cooperative governance and research investment as key pillars for stabilising farmer incomes and boosting productivity.
Speaking in Nyeri on Thursday, Kagwe placed macadamia processors on notice, directing them to purchase all locally produced nuts at the government-set minimum price of Sh100 per kilogram, while warning that failure to comply could prompt a policy reversal allowing raw in-shell exports.
He said the macadamia market had been distorted by intermediaries, with farmers in some regions receiving as little as Sh30 per kilogram despite higher regulated prices downstream.
“The intention is not to punish processors, but to ensure the farmer is not the weakest link in the chain. If processors cannot take what is produced locally, then we will have to reconsider export restrictions,” said Kagwe.
The CS added that strengthening farmer cooperatives remains central to improving bargaining power and reducing exploitation by brokers.
Kagwe also raised concern over increasing theft of high-value agricultural produce, particularly coffee, avocado and macadamia, describing it as a growing threat to rural economies.
“Coffee, avocado and macadamia theft must stop by all means. Any activity that undermines agriculture is economic sabotage,” he said.
He stressed that protecting agricultural output is essential to maintaining confidence in rural production systems and sustaining export earnings.
In a broader reform push, Kagwe announced a nationwide coffee expansion programme aimed at increasing output from 49,000 metric tonnes to 150,000 metric tonnes.
The plan prioritises replanting, rehabilitation of old trees, and expansion of high-yield farming areas.
Nyeri County will receive one million coffee seedlings under the programme, alongside targeted distribution of 10,000 seedlings to leading factories in each county.
Kagwe said recent improvements in farmgate prices had already begun reversing a long-standing decline in coffee production.
“Farmers had started cutting down coffee trees because returns were low. Now that prices are improving, we are seeing renewed interest in coffee farming,” he said.
Nyeri was singled out as a key beneficiary of early reforms. Gachatha Coffee Factory, which recorded a payout of KSh155 per kilogram, received 200,000 seedlings valued at more than Sh12 million.
The CS said reforms underway in the sector include restructuring the Coffee Directorate under the Agriculture and Food Authority into the Coffee Board of Kenya, alongside strengthening the Coffee Research and Training Institute.
Kagwe also turned attention to financial management in agricultural cooperatives, warning that repeated government bailouts were unsustainable without stronger accountability systems.
He cited cases where some factories had accumulated heavy debts without clear audit trails on how borrowed funds were utilised.
“Government cannot continuously write off debts when there is no clarity on how those funds were used. That cycle is not sustainable,” said Kagwe.
New regulatory measures now require cooperatives seeking credit to present structured business plans before accessing loans, aimed at curbing poor financial decision-making.
He further urged cooperative members to take a more active role in leadership selection and oversight.
“Members must raise the quality of leadership in their organisations. Weak governance is one of the main reasons some factories are struggling,” he said.
