Government Launches Cashew Nut Revival Plan

Kenya's Agriculture Cabinet Secretary, Senator Mutahi Kagwe, announced a comprehensive plan to revive the country's cashew nut industry on January 8. The initiative aims to create up to 350,000 jobs and add more than Sh30 billion to Kenya's GDP. This announcement follows years of declining production that has cost the country jobs, farmer incomes, and export revenue.

Kagwe stated the government will implement specific measures to support cashew farmers and processors. The Ministry of Agriculture will work with county governments in coastal regions where cashew cultivation is concentrated. These regions include Kilifi, Kwale, Lamu, and Tana River counties. The government plans to allocate resources for seedling distribution, farmer training, and processing facility upgrades.

Why Kenya's Cashew Industry Collapsed

Kenya's cashew sector has faced multiple challenges over the past two decades. Production peaked at 20,000 metric tons in the 1970s but has since declined dramatically. By 2020, production had fallen to approximately 7,000 metric tons. Several factors contributed to this decline.

Poor farmgate prices discouraged farmers from maintaining their orchards. Many cashew trees aged without replacement. Pests and diseases spread through neglected plantations. Processing facilities closed due to insufficient raw material supply. The collapse of cooperative societies left farmers without organized marketing channels.

Export markets shifted to competitors like Vietnam, India, and Ivory Coast. These countries invested heavily in cashew production and processing. Kenya's share of global cashew trade dwindled to less than 1%. The country now imports processed cashew nuts for domestic consumption despite having suitable growing conditions.

The Revival Strategy: Specific Interventions

The government's revival plan includes concrete measures with clear timelines. The Ministry of Agriculture will distribute 2 million improved cashew seedlings to farmers in 2024. These seedlings come from the Kenya Agricultural and Livestock Research Organization (KALRO). KALRO developed high-yielding, disease-resistant varieties that mature faster than traditional trees.

Farmers will receive training on modern orchard management through the National Agricultural and Rural Inclusive Growth Project. The training covers pruning techniques, pest control, and harvesting methods. The government will establish collection centers in major cashew-growing areas to improve market access.

Processing facilities will receive support through the Kenya Industrial Estates program. The government plans to rehabilitate existing factories in Kilifi and Kwale counties. New small-scale processing units will receive funding through the Youth Enterprise Development Fund and the Women Enterprise Fund.

Why This Matters for Kenya's Economy

Cashew revival addresses multiple economic challenges simultaneously. The 350,000 jobs would represent approximately 1.5% of Kenya's current workforce. Most jobs would go to youth and women in rural coastal communities. These regions have unemployment rates above the national average of 5.5%.

The Sh30 billion GDP contribution would boost Kenya's agricultural sector significantly. Agriculture contributes about 22% to Kenya's GDP. Cashew exports could earn valuable foreign exchange for the country. Kenya's current account deficit stood at 5.2% of GDP in 2023 according to Central Bank of Kenya data.

Successful revival would demonstrate Kenya's ability to reclaim lost agricultural sectors. This could inspire similar efforts for other declining crops like cotton and pyrethrum. The plan aligns with Kenya's Vision 2030 goal of transforming agriculture into a profitable enterprise.

What Businesses Should Watch

Agribusiness companies should monitor seedling distribution and farmer adoption rates. Successful implementation requires farmers to plant and maintain the new cashew trees. Processing companies should assess opportunities in value addition. Raw cashew nuts sell for approximately Sh150 per kilogram while processed kernels fetch Sh800 per kilogram.

Exporters should prepare for certification requirements. The European Union and United States markets demand traceability and quality standards. Financial institutions should develop tailored products for cashew farmers and processors. The Agriculture Finance Corporation plans to offer loans specifically for cashew rehabilitation.

Investors should watch for public-private partnership opportunities. The government seeks private sector participation in processing and marketing. The revival plan includes incentives for companies that establish processing facilities in cashew-growing regions. These incentives may include tax breaks and infrastructure support.

Challenges and Implementation Timeline

The revival faces several obstacles. Climate change brings unpredictable rainfall patterns to coastal regions. Cashew trees require specific conditions during flowering and nut development. Land tenure issues complicate orchard rehabilitation in some areas. Farmers need secure land rights to invest in long-term tree crops.

Infrastructure gaps hinder efficient collection and transport. Many cashew-growing areas have poor road networks. This increases post-harvest losses and transportation costs. The government must coordinate efforts across multiple counties and agencies.

The implementation timeline spans five years. The first phase focuses on seedling distribution and farmer training in 2024-2025. Processing facility rehabilitation occurs in 2025-2026. Full production recovery targets 2028-2029. The government will monitor progress through the Agriculture Sector Coordination Unit.

Market Impact and Regional Context

Kenya's cashew revival could shift regional trade dynamics. Tanzania currently dominates East African cashew production with approximately 300,000 metric tons annually. Mozambique produces about 140,000 metric tons. Kenya aims to reclaim its position as a significant producer in the region.

Global cashew demand continues to grow at 4-5% annually according to International Nut and Dried Fruit Council data. The United States remains the largest importer of cashew kernels. Europe and Middle Eastern markets show increasing demand for premium quality nuts.

Kenya's strategic location offers advantages for export to these markets. The Port of Mombasa provides shipping access to international markets. The African Continental Free Trade Area creates opportunities for intra-African trade. Processed cashew nuts could find markets in neighboring countries with growing middle classes.

The Path Forward

Successful implementation requires sustained commitment from all stakeholders. Farmers must adopt improved practices and maintain their orchards. County governments must provide extension services and infrastructure support. National agencies must coordinate policies and monitor progress.

The private sector plays a crucial role in processing and marketing. Companies must invest in value addition and quality control. Financial institutions must provide accessible credit. Research institutions must continue developing better varieties and management practices.

Kenya's cashew revival represents more than agricultural rehabilitation. It tests the country's ability to execute complex sectoral transformations. The 350,000 jobs and Sh30 billion GDP addition would deliver tangible benefits to coastal communities. These communities have waited decades for meaningful economic opportunities.

The January 8 announcement marks a decisive step toward reclaiming Kenya's cashew heritage. Implementation begins immediately with seedling distribution and farmer mobilization. The coming months will reveal whether stakeholders can translate plans into productive orchards and profitable businesses.