Firm, Chinese machinery dealer in pact to boost export of avocado, nuts

Kenyan investment firm International Controls Ltd (ICL), which owns Kenya Nut Company, has signed a framework cooperation agreement with a Chinese counterpart to boost the export of avocado and macadamia nuts.

The agreement with China National Machinery Industry Corporation, popularly known as Sinomach, will see the two firms cooperate in vast areas in the agricultural sector, including giving Kenyan farm products access to China, while giving Chinese agricultural machinery entry into the local market.

Macadamia and avocado value chains will also benefit from modernisation as Kenya Nut Company seeks to boost production and exports.

Sinomach Hainan Development Company Ltd, a fully owned subsidiary of China National Machinery Industry, has committed to providing agricultural machinery, engineering, technical and marketing services in livestock and agricultural ventures.

The agreement will at the same time see the establishment of the Naivasha Agricultural Research and Demonstration Centre.

“This centre will focus on breeding crop varieties suitable for East Africa, researching crop yield enhancement techniques, and establishing a soil testing laboratory,” reads a copy of the agreement seen by Enterprise.

It will also provide mechanised and modern planting technology demonstrations for farmers in the region.

“Construct modern irrigation and planting system to enhance the yield and quality of macadamia and avocado, and export macadamia nuts and avocado fruits to China,” reads the agreement.

It has a clause on trade facilitation aimed at ensuring what is produced finds a market overseas, particularly in China.

“The parties shall facilitate the seamless flow of products to include avocado, macadamia, and coffee products into the Chinese market, as well as Sinomach Haina’s agricultural machinery and services in Eastern Africa,” says the deal.

Apart from macadamia nuts, Kenya Nut Company also deals in cashew nuts, grape farming, wine business, beef production and processing. Its sister company, Thika Coffee Mills, which processes and exports coffee, will also take part in the agreement.

Other areas of corporation are in cassava and potato-based alcohol distillery, sugarcane plantation and mill as well as setting up of a slaughterhouse in Naivasha with an annual capacity of 6,000 animals.

In Kenya, ICL will be expected to aid the distribution of Chinese agricultural machinery and equipment, not only in the country but also in the region. 

All these, however, are subject to findings of a feasibility study that will determine the viability of these areas of corporation.

“Sinomach Hainan shall undertake comprehensive feasibility assessments, technical evaluations, and financial modelling for the proposed projects under Article 2,” the agreement states.

It adds: “If required by ICL, Sinomach Hainan will strive to use the advantages of commercial resources and strong relationship with financial institutions to help ICL to apply for appropriate financing solutions for this Project.”