Recent claims that millers are unwilling to buy local wheat, leaving Narok County farmers with unsold stock worth Kshs 50 billion, have been dismissed by the Cereal Millers Association (CMA). The CMA, representing most of Kenya’s wheat milling industry, has clarified the situation regarding wheat production, procurement, and market dynamics.
Kenya produces only a small portion of its national wheat demand, with local farmers supplying about 7% of the 24 million bags consumed annually. The CMA, which handles over 95% of the country’s wheat milling, states that it has consistently bought all available local wheat for the past 15-20 years.
In the 2023-2024 season, CMA members purchased the entire 1,458,881 bags produced. As of February 10, 2025, they had already bought 1,246,000 bags for the 2024-2025 season, showing their ongoing support for local farmers.
The claim that Narok County alone has unsold wheat worth Kshs 50 billion has been declared incorrect. Wheat farming in Kenya is not limited to Narok; it also takes place in Nakuru, Laikipia, Uasin Gishu, and Timau.
Based on the expected 1.7 million bags this season, valued at Kshs 5,300 per bag, the total national wheat production is worth approximately Kshs 9 billion—far less than the alleged Kshs 50 billion. To put it in perspective, Kshs 50 billion would equal about 10 million bags, roughly six years’ worth of local production.
Despite the CMA’s commitment to buying local wheat and supporting farmers, the industry faces challenges. High production costs, low yields, and limited mechanization make Kenyan wheat less competitive compared to imports. Farmers struggle with high input costs for fertilizer and fuel, further increasing the price of local wheat.
To assist farmers, CMA members operate under a duty remission scheme that requires them to prioritize local wheat purchases at a premium price before importing. This scheme allows millers to import wheat at a 10% duty rate.
For the 2024/2025 season, millers are paying Kshs 5,300 per 90kg bag for local wheat, significantly higher than the global import price of Kshs 3,500 to Kshs 3,700. This premium reflects the industry’s support for local farmers, despite the higher costs.
However, this system is under threat due to delays in government import approvals. These delays have caused rising demurrage costs at the port, which could disrupt the market, leading to potential wheat shortages and higher prices for consumers.
The CMA remains committed to supporting local wheat farmers and strengthening Kenya’s wheat industry. However, it calls for collective action from farmers, policymakers, and the government to address inefficiencies, improve productivity, and remove trade barriers that disrupt supply chains.
