Kenya launches cashew revival plan to address production slump and processing overcapacity

Kenya has unveiled a strategy to revive its struggling cashew sector, focusing on improved seedlings, farmer support, and orchard rejuvenation, officials said, amid falling production and overcapacity in processing facilities.

Agriculture and Livestock Development Minister Mutahi Kagwe announced the initiative on January 8, saying the program aims to increase output, boost export revenues, and strengthen a sector that has declined sharply over the past decade.

The plan relies on the multiplication and distribution of high-yield, disease-tolerant cashew seedlings, with the Kenya Agricultural and Livestock Research Organization in Mtwapa, Kilifi County, leading the program. Authorities plan to distribute 20,000 seedlings during the upcoming long rains season, followed by the introduction of four additional improved varieties within six months.

“Farmers will also receive guidance on best agricultural practices, including proper spacing, intercropping with coconut and mango trees, and rejuvenation grafting to rehabilitate aging orchards,” Kagwe said in a statement on his social media account.

The Agriculture and Food Authority and county governments will coordinate seedling multiplication and distribution, while the Kenya Plant Health Inspectorate Service and agricultural extension officers provide technical support to farmers.

Kenya’s cashew sector has struggled in recent years. Production fell 13 percent to 7,803 tonnes in 2024, far below the 22,140 tonnes recorded in 2014, according to data from the Agriculture and Food Authority. Farmers have cited pests and diseases, deforestation, and declining interest in cashew farming as key challenges.

“A major threat comes from large-scale tree felling for firewood, used both by households and industry, which has overshadowed replanting efforts,” the Authority noted in its 2025 sector report. Low farm-gate prices have also discouraged growers, leading to abandoned farms in key producing regions.

The decline in raw nut output has left Kenya’s processing industry in a state of overcapacity. Official estimates put the country’s installed cashew processing capacity at 45,000 tonnes — almost six times current production. This imbalance limits the industry’s ability to capture value added from higher output.

Most processing is carried out by small artisanal workshops and semi-industrial units such as East River Foods EPZ and Nuts and More Processing EPZ, which supply primarily the domestic market. A smaller share of processed nuts is exported either as raw nuts or blended dried fruit products, according to the Agriculture and Food Authority.

Industry observers say the new strategy faces significant challenges. Restoring production will require sustained support for farmers, effective pest and disease management, and incentives to encourage replanting and orchard maintenance.

“The revival plan is a positive step, but it remains to be seen whether it can reverse years of declining production,” said an official at a local agricultural consultancy in Mombasa. “Without addressing both farm-level constraints and market incentives, the sector may continue to struggle despite new seedlings.”

Kenya’s government hopes that boosting production and stabilizing the raw material supply will allow processors to operate closer to capacity and increase export earnings. The initiative also aligns with broader efforts to strengthen agricultural value chains and improve livelihoods in rural areas where cashew farming remains a key source of income.

By combining technical support, new planting material, and orchard rehabilitation, the Agriculture Ministry aims to restore competitiveness to the cashew sector and provide long-term benefits for farmers, processors, and the domestic economy.

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