Agriculture Principal Secretary Sicily Kariuki has said that the government is committed to curb rampant business malpractices among nut processing companies in the country.
Speaking at Wondernut International Company Limited in the Export Processing Zone Authority (EPZA), Athi River on Wednesday, Kariuki said the nuts sector had recorded increased malpractices.
The PS said smuggling of raw nuts by unscrupulous business dealers had seen tonnes of macadamia nuts find their way to international markets making Kenya lose millions of shillings.
“As a ministry we are worried about the nuts export business which has a high potential to boost the country’s economy but instead it is marred by malpractices yielding less profits to key players,” said Kariuki.
She added that the nuts business is facing unhealthy competition due to uncontrolled market regulations.
The PS said macadamia farmers got exploited due to lack of standard market prices of nuts.
She cautioned nut processors to stop engaging in dubious businesses of processing, parking and exporting substandard nuts arguing that they might cost the country millions of shillings.
“We will come up with strategies and policies including strict regulations of the sect that will ensure farmers reap more from their yields as well as ensure nut processors operate according to stipulated rules and regulations,” said Kariuki.
Speaking at the same time Agriculture, Fisheries and Food Products Interim general director Alfred Musolo said the ministry of agriculture will not compromise on substandard exploitative nut production.
“It has come to our attention that nuts business in the country is yielding too little economic value compared to the potential it has. It is also a concern that some companies are found being in possession of unprocessed nuts stored despite of nuts being off season,” said Musolo.
He said such practices were unhealthy risking the quality of nuts saying that is a clear indication of possibility of dubious business within the sector.
The facts finding mission is aimed at encouraging capacity of local processors, creating jobs and enable nut farmers benefit more.