NAIROBI, KENYA-February 17, 2025– Recent claims suggesting that millers are unwilling to purchase local wheat, leaving farmers in Narok County with unsold stock worth Ksh.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.
According to CMA, Contrary to the 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,” said Cereal Millers Association (CMA) of Kenya, Paloma Fernandes.
She continued, “Furthermore, the claim that Narok alone has unsold wheat worth Ksh.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 Ksh.5,300 per bag stands at approximately Ksh. 9 billion, – not Ksh.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,”
Ms Farnandes CMA is committed to purchasing locally grown wheat and protecting local farmers.
“However, structural challenges continue to hinder the growth of the industry. High production costs, low yields per acre and limited mechanisation 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,” she further stated.
Costs
Despite the challenges, CMA members say they have been operating under a duty remission scheme, which requires them to prioritise 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 purchased local wheat at Ksh.5,300 per 90kg bag, a rate higher than the global import parity price of between Ksh.3,500 to Ksh.3700, a difference of close to Ksh.1,500 per 90kg bag.
The CMA CEO further argued that the 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,” she added.
The Cereal Millers Association assured the local farmers in Kenya that it 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.
