Nairobi, Kenya| Agriculture Cabinet Secretary Mutahi Kagwe has directed millers to purchase 400,000 bags of locally grown wheat before they can receive import licenses from the government.
The directive, issued on Wednesday, aims to safeguard local wheat farmers who have been struggling with market access and falling prices.
According to Kagwe, the government, through the Agriculture and Food Authority (AFA), will only release the C60 import licenses for the 21 millers under the Cereal Millers Association (CMA) once they have cleared the backlog of unsold local wheat.
Currently, a shipment of 260,000 bags of imported wheat is held at the Port of Mombasa, incurring a demurrage fee of $0.3 per tonne per day, while only 1.3 million bags of local wheat have been purchased so far.
Ensuring Fair Prices for Farmers
During a day-long meeting with wheat farmers and millers, Kagwe emphasized the need to uphold fair pricing, urging farmers to sell their wheat only at the government-set prices—KSh 5,300 per bag for Grade 1 wheat and KSh 5,200 per bag for Grade 2.
He warned farmers against accepting lower prices, stressing the importance of protecting their earnings and ensuring sustainable wheat farming in the country.
“To restore trust in the tripartite agreement signed in 2010 between the Cereal Millers Association (CMA) and Cereal Growers Association (CGA), with the government as a guarantor, we must ensure millers honor their commitment to purchase local wheat at agreed prices,” Kagwe stated.
Formation of a Wheat Sector Standing Committee
To address long-term challenges in the sector, the CS announced the establishment of a Wheat Sector Standing Committee.
This committee will comprise representatives from the Ministry of Agriculture, CMA, CGA, the National Cereals and Produce Board (NCPB), AFA, county governments, and farmers.
Its primary goal is to reverse the decline in local wheat production, which currently accounts for only 8% of Kenya’s annual wheat consumption of 26 million bags.
The committee will also oversee compliance with the local wheat purchase program, which mandates that millers buy locally grown wheat before qualifying for the 10% duty remission scheme under the East African Community (EAC) rules.
The duty remission scheme allows millers to import wheat at lower tariffs, but only after fulfilling their obligations to local farmers.
Leveraging Technology for Transparency
CS Kagwe further called on the committee to adopt technology to enhance data collection and management, ensuring credibility, accountability, and transparency in the wheat sector.
“Reliable data will help us track wheat production, enforce fair pricing, and guarantee better incomes for farmers while achieving national food and nutrition security,” he said.
Ongoing Farmers’ Protests Over Unfair Pricing
The directive comes amid rising tensions between wheat farmers and millers, with farmers staging demonstrations since Monday in Narok, Nakuru, Uasin Gishu, and Timau.
The farmers are protesting against millers for allegedly paying lower-than-agreed prices despite the existing contract between the two parties.
Farmers have also raised concerns over the influx of imported wheat, which they claim is saturating the local market and pushing down prices.
They are calling on the government to regulate wheat import volumes to ensure sufficient demand for their produce.
Government’s Commitment to Farmers
In response to the farmers’ grievances, Kagwe reassured them of the government’s commitment to enforcing fair trade practices and ensuring that locally produced wheat is prioritized.
“The government will take all necessary steps to protect our farmers from unfair competition and ensure their produce gets a fair market,” he affirmed.
With these measures, the Ministry of Agriculture hopes to strengthen Kenya’s wheat farming sector, reduce dependency on imports, and secure better livelihoods for local farmers.
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