Over the past two decades, Kenya has been a growing force in the global macadamia market. The country nearly quadrupled production in the 2010s and today ranks as the world’s third-largest exporter. Much of that growth has been powered by smallholder farmers growing macadamia alongside other crops on small plots of land. While macadamia is one of the most expensive nuts in the world, Kenyan farmers typically earn little of the value attached to its high supermarket price tag. In 2017, three businesswomen set out to change that, acquiring a then-defunct business so they could deliver higher prices for local farmers.
Jane Maigua, Charity Ndegwa, and Loise Maina use their combined thirty-plus years of agribusiness experience to run Exotic EPZ Ltd. with the goal of supporting rural communities in their native country through economic empowerment, environmental sustainability, and greater employment. When they started as an essentially new business with no track record, the entrepreneurs struggled to access financing to unlock their vision. In addition to the typical hurdles that agri-SMEs face when looking for credit, these women entrepreneurs faced the additional challenge of needing to overcome bias related to their gender. Eventually, Exotic received its first CSAF member loan from Root Capital in 2018, enabling it to grow its business and establish a track record that would unlock additional financing in the future. Since then, Exotic has diversified its capital mix, borrowing from Rabo Rural Fund, Common Fund for Commodities, and other impact investors over subsequent years. Today, the business reaches 10,000 farmers, connecting them with stable markets and providing on-farm training to improve their productivity. The solar-powered factory and offices employ over 100 people with a special focus on expanding leadership opportunities for women and young people.
However, challenges persist for the Kenya macadamia industry overall. A fall in demand that began at the onset of the pandemic and the subsequent collapse of global macadamia prices has made forecasting and contracting more difficult in the industry while driving down farmers’ incomes. The market shift has driven a decrease in annual CSAF member disbursements for Kenya macadamia from $19.5M in 2018 to $10.5M in 2023. Amid this challenging environment, CSAF lenders have continued to support macadamia businesses. Since 2020, they have provided Exotic with a cumulative $5.6M in trade financing along with training in agronomic extension, processing standards, and business management. Ongoing financing enables Exotic to continue facilitating market access for farmers and deliver positive impact for rural communities.