Preheat oven to 180 degrees C. Generously grease an oblong baking dish.
Moisten the matzo farfel by placing in a large bowl, stirring in enough cold water to cover then rinsing immediately in a colander set in the sink. Mix in beaten eggs, sugar, salt and margarine until thoroughly combined. Lightly mix in the apples, bananas and 1/4 cup of ground walnuts. Spoon the kugel into the prepared baking dish then sprinkle with remaining 1/4 cup of ground walnuts.
Bake in the preheated oven until the kugel is browned and set in the centre, about 1 hour. A toothpick inserted into the centre should come out clean.