The future of Nuts and More Processing (EA) EPZ Limited, a cashew nut processing company in Kilifi, is uncertain as the factory struggles to meet market demand due to a critical shortage of raw materials.
Despite having the capacity to process over 6,000 tonnes of cashew nuts in a single shift, the company has only been able to secure 3,000 tonnes locally, forcing it to rely on imports from Tanzania to sustain operations.
The factory, which employs over 200 residents, is now struggling to maintain production levels and meet its export obligations.
Addressing the Press during a visit to the factory yesterday, State Department for Investment Promotion Principal Secretary (PS) Abubakar Hassan, acknowledged the gravity of the situation and assured that his department, in collaboration with the Ministry of Agriculture and other relevant government bodies, is working on strategies to boost local cashew-nut production.
“We have observed that there is a big problem with the availability of raw materials for this investor to process. We want to work with him and other relevant government institutions, especially the Ministry of Agriculture to see how we can encourage our farmers to plant more cashew nuts,” Hassan remarked.
He said the government has established structures to ensure the investor can access the European market quarter-free and duty-free, which will help reduce production costs and enhance profitability.
The PS also revealed that the government has plans to establish another cashew nut processing factory in Lamu as part of a broader value chain initiative.
He however cautioned that the sustainability of both factories is contingent on the ability of local farmers to meet the raw material demand.
“We are going to collaborate with the County Governments in the coast region to ensure that the farmers are first of all aware of this market demand and that they are encouraged and subsidized to produce more cashew nuts so that there is enough raw material for value addition and processing”, PS Hassan added.
Nuts and More Director Heinz Mueller attributed the shortage of raw materials to the recent El Niño season, which has adversely affected agricultural production in the region.
He however stated that he remains optimistic that with the government’s intervention, they will be able to improve the supply of raw materials to the factory.
Mueller maintained that their export markets are secure, but their biggest hurdle remains the shortage of raw materials.
“From the processing point of view, we have unlimited targets. We have so many customers who are waiting for our beautiful Kenyan grown Cashew nuts,” Mueller asserted.
By Cynthia Maseno
