Recent allegations suggesting that millers are reluctant to purchase local wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion, have been dismissed as inaccurate by the Cereal Millers Association (CMA).
The association, which represents the majority of Kenya’s wheat milling industry, has come forward to clarify the realities of Kenya’s wheat production, procurement, and market dynamics.
Kenya currently produces only a fraction of its national wheat demand, with local farmers contributing approximately 7% of the 24 million bags consumed annually.
The CMA, which accounts for over 95% of the country’s wheat milling, has consistently purchased all available local wheat every season for the past 15-20 years. In the 2023-2024 season, CMA members procured the entire 1,458,881 bags produced.
As of February 10, 2025, 1,246,000 bags had already been purchased for the 2024-2025 season, demonstrating the industry’s continued commitment to supporting local farmers.
The claim that Narok County alone has unsold wheat worth Kshs 50 billion has been deemed factually inaccurate. Wheat farming in Kenya is not confined to Narok; it also thrives in regions such as Nakuru, Laikipia, Uasin Gishu, and Timau.
Based on the 1.7 million bags expected this season, valued at Kshs 5,300 per bag, the total national value of wheat produced stands at approximately Kshs 9 billion—not Kshs 50 billion as alleged. To put this into perspective, Kshs 50 billion would equate to 10 million bags, which is roughly six years’ worth of local production.
While the CMA remains dedicated to purchasing locally grown wheat and protecting Kenyan 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 face significant challenges, including high input costs for fertilizer and fuel, which make local wheat more expensive than imported alternatives.
To support local farmers, CMA members operate under a duty remission scheme that requires them to prioritize local wheat purchases at a premium price before seeking import approvals. This scheme allows millers to import wheat at a 10% duty rate.
For the 2024/2025 season, millers are purchasing local wheat at Kshs 5,300 per 90kg bag, a rate significantly higher than the global import parity price of between Kshs 3,500 and Kshs 3,700. This premium pricing reflects the industry’s commitment to local farmers, despite the higher costs.
However, this delicate balance is currently under threat due to severe delays in government import approvals. These delays have led to skyrocketing demurrage costs at the port, which could destabilize the market, leading to potential wheat shortages and higher consumer prices.
The CMA has reiterated its commitment to supporting local wheat farmers and strengthening Kenya’s wheat value chain. However, the association has called for collective action from all stakeholders, including farmers, policymakers, and the government, to address inefficiencies, improve farm productivity, and remove trade barriers that disrupt supply chains.
