Kenyan authorities have intercepted a major smuggling operation involving 27 metric tons of raw macadamia nuts destined for China, exposing a growing trade crisis fueled by Kenya’s strict export ban.
Illegal Shipment Uncovered
According to local reports, intelligence agents at the Port of Mombasa seized three 40-foot containers falsely declared as “tarpaulin” but loaded with raw macadamia nuts worth $64,300. The shipment, linked to exporter DLI International Group, was allegedly being routed through Mozambique to bypass Kenya’s ban on raw nut exports.
The Kenyan government imposed the ban to protect local farmers and boost domestic processing, but industry experts warn it has instead fueled a black market as demand from China surges.
China Faces Supply Shortage
Kenya has become a key supplier of macadamias to China, with imports skyrocketing from 400 metric tons to 7,600 metric tons annually in recent years. However, Chinese processors now report critical shortages due to Kenya’s export restrictions. Some suppliers have already sold out of certain nut sizes, and prices are expected to remain high if the ban continues.
Globally, South Africa leads macadamia production, followed by China, Australia, and Kenya. But with Kenya’s nuts locked in by the ban, traders are scrambling for alternatives.
Trump’s Tariffs Have Minimal Impact
Meanwhile, the industry remains unfazed by U.S. tariffs on African macadamia imports. A 10% duty currently applies to shipments from Kenya and South Africa, but suppliers say their diverse markets—including Europe and Asia—soften the blow.
U.S. importers also stress the need for a multi-country supply chain, as trade policies remain unpredictable. Despite tariffs, American demand for macadamias continues to outpace local production, meaning buyers may have to accept higher prices.
With Kenya tightening inspections and China facing supply gaps, the macadamia trade is at a crossroads. Some analysts suggest Kenya could ease restrictions for processed nuts, while others believe smugglers will keep finding new routes.
For now, the battle between regulators and smugglers continues—with farmers, traders, and global markets caught in the middle.