Millers Deny Allegations of Snubbing Local Wheat, Highlight Industry Hurdles
Recent claims that millers are unwilling to purchase local wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion, have been dismissed as inaccurate and misleading regarding Kenya’s wheat production and market dynamics sector.
According to the Cereal Millers Association (CMA), Kenya produces only a small fraction of its national wheat demand, with local farmers supplying approximately 7 percent of the 24 million bags consumed annually. CMA members, who account for over 95 percent of the country’s wheat milling, have consistently purchased all available local wheat over the past 15 to 20 years.
Data from the association shows that during the 2023-2024 season, millers procured the entire 1,458,881 bags produced. For the 2024-2025 season, as of February 10, 2025, millers had already purchased 1,246,000 bags, reaffirming their commitment to supporting local farmers.
The CMA further refuted claims that Narok alone has unsold wheat worth KES 50 billion, terming the figure as grossly exaggerated.
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 these areas stands at approximately KES 9 billion, based on an expected yield of 1.7 million bags priced at KES 5,300 per bag.
The association pointed out that KES 50 billion worth of unsold wheat would equate to 10 million bags equivalent to six years of total local production.Despite their commitment to local farmers, millers highlighted structural challenges that continue to hinder the industry’s growth.
High production costs, low yields per acre, and limited mechanization have made Kenyan wheat less competitive than imports.
Farmers grapple with high input costs, including fertilizer and fuel, which drive up local wheat prices compared to global market rates.The millers operate under a duty remission scheme that mandates them to prioritize local wheat purchases at a premium price before seeking import approvals, allowing them to import wheat at a 10 percent duty.
For the 2024/2025 season, millers are buying local wheat at KES 5,300 per 90kg bag significantly higher than the global import parity price of KES 3,500 to KES 3,700 per bag.
However, delays in government import approvals are threatening this balance, leading to rising demurrage costs at the port.If these bottlenecks persist, Kenya could face market instability, wheat shortages, and higher consumer prices.
The CMA reiterated its commitment to supporting local wheat farmers and strengthening Kenya’s wheat value chain. However, it called for collaborative efforts from farmers, policymakers and the government to address inefficiencies, improve farm productivity, and eliminate trade barriers that disrupt supply chains.
The association emphasized that a sustainable future for Kenya’s wheat sector requires a holistic approach to ensure fair pricing, stable supply and industry growth.
