By Brian Kiprono - Reporter
Kenya, January 08 2026 - Agriculture Cabinet Secretary Mutahi Kagwe has launched a renewed push to revive Kenya’s struggling cashew nut industry, saying the decline of the crop has cost the country jobs, incomes and export earnings despite strong global demand.
Speaking during a visit to cashew nut farmers and processors in Kilifi County, Kagwe said Kenya is producing far below its potential, leaving factories idle and farmers abandoning a crop that once sustained coastal livelihoods. Kenya currently produces about 13,000 tonnes of cashew nuts annually, against an installed processing capacity of 45,000 tonnes.
“This gap has denied the economy hundreds of thousands of potential jobs and pushed farmers out of a crop that once anchored livelihoods along the Coast,” Kagwe said. According to the Agriculture and Food Authority (AFA), a fully revived cashew industry could generate up to 350,000 jobs across farming, processing, transport and export value chains. AFA estimates the sector could also contribute more than Sh30 billion to the country’s GDP and restore cashew as a major income earner for coastal communities.
Kagwe noted that years of falling production have eroded household incomes along the Coast, even though Kenya has suitable land, rising international demand and underutilised processing plants. The CS was accompanied by AFA Director General Bruno Linyiru and AFA Director of Nuts and Oil Crops Ann Gikonyo.
He said the government’s revival plan is anchored on research and farmer support, led by the Kenya Agricultural and Livestock Research Organisation (KALRO), particularly its Mtwapa Centre, which focuses exclusively on cashew research.
Kagwe said KALRO Mtwapa has developed a new disease-tolerant cashew variety capable of doubling yields, with 20,000 seedlings of the improved variety already available for distribution during the upcoming long rains. He added that four more improved varieties are at advanced stages of development and will be ready within six months.
“Farmers have complained about declining yields and disease pressure. Research has responded, and the solutions are ready,” Kagwe said. Seedling multiplication and distribution are being coordinated by AFA in collaboration with county governments, with support from KEPHIS and extension services to ensure quality assurance and effective last-mile delivery.
During meetings with farmers, the ministry intensified sensitisation on good agronomic practices, including the recommended spacing of 10 metres by 10 metres and intercropping cashew with coconut and mango. Officials said the model can significantly boost incomes while improving climate resilience.
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KALRO officials also noted that top-grafting remains a faster and viable option to rehabilitate ageing orchards and restore productivity. Kagwe questioned Kenya’s continued reliance on imports despite the crop’s strong domestic potential.
“How can we be importing cashew nuts when our land is idle, and our farmers are struggling?” he posed.
The delegation also engaged private sector players, including East River Foods EPZ Limited (formerly Grow Fairly), which said the country urgently needs to scale up production to match processing capacity.
The company told the CS it has invested about USD 3 million in the cashew value chain and currently employs around 600 women in processing, while working with 15,000 farmers across the region. However, only 3,000 farmers have 50 trees or more, highlighting the low scale of production at farm level.
Processors noted that although about two million seedlings have been distributed since 2017, access remains a challenge, with many farmers saying even the subsidised price of Sh30 per seedling is still unaffordable. They also cited gaps in last-mile delivery and called for stronger coordination between national agencies and county extension services.
Another processor, Nuts and More Processing (EA) EPZ Ltd, said inadequate raw cashew supply remains its biggest constraint. The firm has a processing capacity of 7,000 tonnes on a single shift, expandable to 15,000 tonnes, but continues to operate below capacity due to low domestic production.
Kagwe said reviving the cashew industry will require a whole-of-government approach involving the Ministry of Agriculture, KALRO, AFA, KEPHIS, county governments, farmers and the private sector. He announced plans to convene a high-level meeting of all stakeholders to agree on a fast-tracked master plan to restore production, stabilise supply for investors and rebuild farmer confidence.
“Cashew farmers, there is hope. We have heard you and this time, we are moving with speed and seriousness,” Kagwe said.
