BISHOP Godfrey Kariuki, a smallholder farmer nestled on the slopes of Mount Kenya, has witnessed a transformation in his farming fortunes. For decades, Kariuki, like many other Kenyan smallholders, struggled to produce enough from his one-acre plot to support his family. Living mostly off ugali, the staple corn flour porridge, he could only dream of sending his daughters to university.
But everything changed when Kariuki embraced new techniques to boost his macadamia yield. With guidance from field officers working for Privamnuts EPZ Kenya Ltd., he learned how to use manure, prune his trees, and spray them regularly to protect the delicate flowers. The results were staggering—his trees, which previously produced a mere 10 kilos each, now yield between 70 and 100 kilos.
Kariuki’s success is part of a broader movement transforming Kenya’s macadamia industry, led by Privamnuts, a fast-growing food processing and export company. Over the past decade, the company has doubled its output to 7,000 tonnes per year by working with 18,000 smallholder farmers. Privamnuts now supplies macadamia to major global retailers, including Walmart, for use in snacks, cereals, and baked goods, positioning Kenya as the fourth-largest exporter of this highly sought-after nut.
Boosting farmers’ livelihoods
Macadamia nuts, often referred to as the world’s most expensive nut, have become a lifeline for smallholder farmers like Kariuki. By increasing their yields, these farmers have seen their incomes rise, allowing them to reinvest in their farms and improve their living conditions. The higher yields also help sustain families and send children to school, improving the future prospects of entire communities.
Privamnuts has been at the forefront of this transformation, offering farmers the knowledge and support they need to improve their macadamia production. The company’s approach has not only increased yields but also raised the quality of Kenyan macadamia, allowing them to command higher prices on the global market. Privamnuts now rivals suppliers from Australia, South Africa, and China, helping to elevate Kenya’s status as a key player in the international macadamia industry.
Kariuki’s story is emblematic of this change. With the extra income from his macadamia trees, he has expanded his farm, adding livestock, beehives for honey production, and planting more macadamia trees. His ambition is to help his less privileged neighbours improve their yields and livelihoods, ensuring that the next generation does not face the same struggles he endured.
Major investment fuels expansion
Privamnuts is poised for even greater growth, thanks to a substantial investment from Aavishkaar Capital, an India-based impact investment firm, in partnership with the German development bank KfW. With this funding, the company plans to increase its production capacity to 12,000 tonnes by building a new factory in Embu. This expansion will enable Privamnuts to support 30,000 smallholder farmers, further boosting incomes and livelihoods across Kenya.
The investment also allows Privamnuts to disrupt the traditional practice of shipping macadamia to China for processing, keeping more of the value within Kenya. Previously, Kenyan macadamia sold for lower prices than those from South Africa, but the improved processing and quality control have allowed Kenya to catch up and even surpass its competitors. Even during the global challenges of the COVID-19 pandemic and a steep drop in macadamia prices, Privamnuts maintained profitability thanks to its focus on quality and fair treatment of farmers.
Growing markets and new opportunities
The company’s emphasis on supply chain traceability, factory hygiene, and fair payment terms has helped it thrive in key markets, especially the United States. There, Privamnuts supplies macadamia to Capital Foods International, which uses the nuts in a range of bakery products. In Europe, companies such as Euro Company transform Privamnuts’ macadamia into flour, creams, and snacks. With 5,000 farmers certified organic, Privamnuts is also tapping into the premium organic market, supplying natural food brands such as Sunco Foods in Canada.
‘We love what Privamnuts is doing in achieving value capture for smallholder farmers,’ says Ashish Patel, Managing Partner at Aavishkaar Capital in Nairobi. He praised the company for its commitment to rural livelihoods, ensuring fair treatment, timely payments, and environmental stewardship, while maintaining strong food safety standards and profitability. These values align with Aavishkaar’s mission of impact investing, which aims to improve lives across the Global South.
Diversifying for the future
Looking ahead, Privamnuts is set to diversify its product line, expanding beyond macadamia to include cashews, dried fruits like mangoes and papayas, and even avocados—Kenya’s ‘green gold.’ These crops are already farmed in Kenya and are often used in the same food products as macadamia, offering synergies that Privamnuts is eager to explore.
Patrick Mbogo, co-founder and CEO of Privamnuts, recalls how the company started as a small family business, with the name derived from his family members—Patrick, Rita, and their children Ivan, Ivanna, Ivy, and Ida. What began as a modest venture has now grown into a company making a global impact, supporting thousands of Kenyan farmers and reshaping the country’s agricultural landscape.
With the support of Aavishkaar and KfW, Privamnuts is set to scale even further, delivering greater value to Kenyan farmers and positioning the country as a powerhouse in the global macadamia market. As Bishop Kariuki expands his farm and supports his neighbours, the story of Kenya’s macadamia boom is one of resilience, empowerment, and a brighter future for smallholder farmers across the country.
