Aiden Kiprop 
Privamnuts EPZ: Driving Kenya’s Macadamia Revolution
Kenya’s macadamia industry is experiencing a period of unprecedented growth, driven by many factors, including soaring prices, government support, and increasing global demand.
The once-niche crop has transformed into a lucrative cash cow for farmers and businesses alike, propelling the country to the forefront of the global macadamia market.
According to the Nuts Traders Association of Kenya, growers from Mt. Kenya and parts of the Rift Valley regions earned a substantial Sh4.1 billion in 2022 alone.
This impressive figure reflects the increasing profitability of macadamia farming and the growing number of farmers adopting it as a viable agricultural enterprise.
The price surge for macadamia has been nothing short of remarkable. In the past year, prices have soared from Sh30 per kilogramme to between Sh100 and Sh130, enticing farmers to expand their macadamia acreage and invest in improved cultivation techniques.
Kenya is the third-largest exporter of macadamia nuts in the world.
The industry’s growth is driven by a significant increase in domestic production, which rose from approximately 11,000 tonnes of nut-in-shell (NIS) in 2009 to 42,500 tonnes by 2018. By 2023, production had further increased to around 45,000 tonnes.
The macadamia industry has seen significant advancements due to the emergence of innovative processing and marketing companies.
These entities enhance the value of macadamia nuts, develop new markets, and ensure that Kenyan macadamia reaches consumers worldwide. Privamnuts EPZ Limited, with backing from India-based impact investment firm Aavishkaar Capital Investment, is one such key player in this evolution.
Incorporated in 2011, Privamnuts was established to engage in agro-food processing and seize opportunities in the Kenyan macadamia market. Initially located in the Thika industrial area, Nairobi, the company expanded in 2015, constructing a state-of-the-art processing plant in Embu, approximately 130 kilometers from the capital. The new facility began operations in February 2016, coinciding with the company’s transition to Privamnuts EPZ (Kenya) Ltd after receiving an export processing zone operating license.
A strong commitment to quality and food safety drives Privamnuts. Competent quality control and assurance teams oversee production, ensuring compliance with FSSC22000, Organic, Kosher, and Halal certifications. The company has a total processing capacity of 7,000 metric tons annually, featuring 3,000 metric tons of organic nuts in shell and 4,000 metric tons of conventional nuts in shell.
To support local farmers, Privamnuts has established collection centers near farming communities and operates a macadamia nursery with over 30,000 organic seedlings available at subsidized rates. This initiative fosters local agricultural development and ensures the sustainability of the macadamia farming sector.
Privamnuts supplies macadamia kernels to some of the world’s largest food manufacturers across various sectors, including snacks, bakery, ingredients, retail, and confectionery. Through its dedication to quality and strong partnerships, Privamnuts plays a vital role in promoting the Kenyan macadamia industry on the global stage, contributing to economic prosperity and community well-being.
Walking with farmers
In Embu, Privamnuts works closely with 10,000 small-holder farmers. The company provides essential support, including input provision, training on good agricultural practices, and timely payments, fostering strong relationships and ensuring a consistent supply of high-quality macadamia nuts.
The company has empowered these farmers to significantly increase their macadamia yields through sustainable farming practices, fair treatment, just compensation and the provision of essential resources and training.
Focusing on the production of premium-quality nuts, Privamnuts has secured better prices in the competitive international market. This has allowed Kenya to become the fourth-largest exporter of macadamia nuts globally.
The company has built a resilient business model that has weathered various challenges, including the COVID-19 pandemic and fluctuations in global macadamia prices.
Despite the latter reaching an all-time low in 2023, the company-maintained profitability, showcasing its robustness.
This success is supported by strong, long-term relationships with customers, many of whom have consistently purchased from Privamnuts for over three to five years.
“Partnering with Aavishkaar Capital aligns perfectly with our goals,” said Patrick Mbogo, Founder & Managing Director of Privamnuts EPZ Kenya Ltd.
“Together, we are committed to creating high-quality jobs that enhance the economic and social well-being of farmers and workers, thereby uplifting communities while delivering premium agricultural and food products to global customers.”
Strengthening Market Presence
Based on its extensive farmer initiatives, the company has secured a significant funding boost from German state-owned investment and development bank (KfW). The strategic partnership will enable Privamnuts to expand its operations, enhance sustainability initiatives, and solidify its position as a leading player in the global macadamia market.
The funding, amounting to Sh387 million ($3 million), was provided through the ESG First Fund, a USD 250 Mn fund dedicated to investing in Africa and Asia. This fund prioritizes investments that generate superior Environmental, Social, and Governance (ESG) outcomes, aligning with both commercial and financial returns.
The funding will facilitate the construction of a new processing facility in Embu, aiming to increase production capacity to 12,000 tonnes. This expansion will not only boost output but also enable the company to support 30,000 smallholder farmers across Kenya, enhancing incomes and livelihoods nationwide.
The investment also allows Privamnuts to disrupt the traditional model of shipping macadamia nuts to China for processing, ensuring that a larger share of the value chain remains within Kenya.
The move will enhance local processing capabilities, allowing Kenyan macadamias to gain a competitive edge—leveraging improved to better compete with suppliers from established markets like South Africa and Australia.
Commitment to Quality;
Privamnuts’ commitment to quality and supply chain traceability has paved the way for a robust presence in key export markets, particularly the United States and Europe. In the U.S., the company supplies macadamia nuts to notable clients such as Capital Foods International, which uses them in a variety of bakery products.
In Europe, partnerships with companies like Euro Company have enabled the transformation of Privamnuts’ macadamia into flour, creams, and snacks.
Additionally, with approximately 5,000 farmers certified as organic, the company is tapping into the premium organic market, supplying natural food brands like Sunco Foods in Canada.
Ashish Patel, Managing Partner at Aavishkaar Capital, commends Privamnuts for its successful approach, stating that they appreciate what Privamnuts is doing in achieving value capture for smallholder farmers.
“Their commitment to fairness and sustainability resonates with our mission of impact investing, which seeks to improve lives across the Global South.”
Diversification for Sustainable Growth;
Looking ahead, Privamnuts is set to broaden its product offerings beyond macadamias. The company has plans to include cashews, dried fruits like mangoes and papayas, and avocados.
These crops not only complement existing operations but open doors to new market opportunities, offering potential synergies within the food product sector.
Privamnuts’ business strategy and investment on farmers demonstrates the profound impact of innovative practices on socio-economic development. It has prioritized fair treatment of farmers, ensuring timely payments and has established a strong reputation for environmental stewardship, food safety, and profitability.
As a global exporter of quality macadamia kernel, Privamnuts not only contributes to the economy but also sets a standard for sustainable and ethical business practices in the agricultural sector.
This commitment to excellence and responsibility positions Privamnuts as a leader in the industry, paving the way for a more equitable future for all stakeholders involved.
