Published on February 17, 2025 by Agencies for Kenya Online News
Last Updated on 1 year by Agencies for Kenya Online News
Recent claims suggesting that millers are unwilling to purchase local wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion, are inaccurate and misrepresent the realities of Kenya’s wheat production, procurement and market dynamics.
Kenya produces only a fraction of its national wheat demand, with local farmers supplying approximately 7% of the 24 million bags consumed annually. Members of the Cereal Millers Association (CMA) account for over 95% of the wheat milling in Kenya.
Contrary to recent reports, CMA members have consistently purchased all available local wheat every season over the last 15-20 years. In the 2023-2024 season, CMA millers procured the entire 1,458,881 bags produced. For the 2024-2025 season, as of February 10, 2025, 1,246,000 bags had already been purchased, demonstrating our continued commitment to supporting local farmers.
Furthermore, the claim that Narok alone has unsold wheat worth KES 50 billion is factually inaccurate. Wheat farming in Kenya extends beyond Narok to regions such as Nakuru, Laikipia, Uasin Gishu, and Timau. The total national value of wheat produced across all these regions based on the 1.7 million bags expected this season at KES 5,300 per bag stands at approximately KES 9 billion, – not KES 50 billion as alleged. It is worth noting that 50B worth of unsold wheat equates to 10 million bags which is approximately 6 years of local production.
While we remain committed to purchasing locally grown wheat and protecting our local farmers, structural challenges continue to hinder the growth of the industry. High production costs, low yields per acre, and limited mechanization have made Kenyan wheat less competitive compared to imports. Farmers struggle with high input costs, including fertilizer and fuel, making local wheat more expensive than imported alternatives.
Despite these challenges, CMA members operate under a duty remission scheme, which requires them to prioritize local wheat purchases at a premium price, before seeking import approvals, that allows them to import wheat at a 10% duty.
For the 2024/2025 season, millers are purchasing local wheat at KES 5,300 per 90kg bag, a rate higher than the global import parity price of between Kshs 3,500 to KES 3700, a difference of close to KES 1,500 per 90kg bag. However, this delicate balance is currently being threatened by severe delays in government import approvals, leading to skyrocketing demurrage costs at the port. If these bottlenecks persist, Kenya risks market instability, potential wheat shortages, and higher consumer prices.
CMA remains committed to supporting local wheat farmers and strengthening Kenya’s wheat value chain. However, to ensure a sustainable future for the sector, all stakeholders, including farmers, policymakers, and the government—must work together to address inefficiencies, improve farm productivity, and remove trade barriers that disrupt supply chains.
