Court halts macadamia exports in licensing row

The High Court has suspended the government’s move to grant nine macadamia dealers exclusive rights to export raw nuts, pending the determination of a case filed by a farmer.

Joseph Ndung’u challenged the decision by Agriculture Cabinet secretary Mithika Linturi, arguing that the move to grant exclusive rights to unlicensed dealers to export in-shell macadamia nuts within nine days after the lifting of the ban, is illegal.

Read: Kuria lifts ban on raw macadamia exports 

Justice John Chigiti suspended the decision after Mr Ndung’u complained that excluding over 41 other dealers amounts to discrimination.

The farmer said the information posted on the Nuts & Oils Directorate website shows only two dealers from the nine granted the exclusive rights are licensed dealers of macadamia.

“Leave is granted in terms of prayer 2(a) of the chamber summons. Leave shall operate as stay in terms of prayer three,” said the judge.

The judge directed Mr Ndung’u to serve the court documents upon the minister, Attorney General Justin Muturi and the licensed firms.

Mr Ndung’u said the CS in a letter on July 7, 2023, lifted the ban on the exportation of in-shell macadamia nuts to address the price crisis.

However, the letter allowed nine companies — Fair Nut Company Ltd, Nicemart Traders & General Suppliers and Exotic EPZ, the exclusive rights to export the nuts for 90 days from July 17 to October 16.

Others granted the rights are Nutri Nuts and Fruits, Edenswin Traders Ltd, OCM Consulting Ltd, Lenana Processors Company Ltd and Kamil Packers Ltd.

The farmer says the failure to include over 41 industry dealers, processors, farmers and macadamia sector stakeholders, in the decision offends the principles of public participation.

He added that the move is contrary to section 40 of the Agriculture & Food Authority Act, which emphasizes participation of farmers in the governance of the agricultural sector in development of policies, regulations and major decisions that affect the sector.

“That as a result of the foregoing skewed decision, all legitimate and duly licensed dealers and processors of in-shell macadamia have been deliberately sidelined by the skewed decision of the 1st Respondent (CS Agriculture),” he said.

The judge directed the matter to be mentioned on October 17 for parties to be given a judgment date.

Mr Ndung’u said the decision of conferring exclusive exportation rights without any justifiable competitive selection criteria encourages discriminative practices which ultimately discriminate against other legitimate macadamia dealers and processors.

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“It is therefore disturbing that the 1st Respondent would violate the same law he is seeking to enforce by granting exclusive license to unlicensed entities to export in-shell macadamia nuts within the period of the lifting of the ban as stipulated in the said notice while excluding duly licensed processors and exporters of macadamia,” he said.

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