Millers have mopped up 1.24 million-90 kilogramme bags of wheat from farmers in the current crop season, a lobby has said.
Kenya produces only a fraction of its national wheat demand, with local farmers supplying approximately seven percent of the 24 million bags consumed annually.
Kenya largely relies on imports to meet as much as three-quarters of the demand for the commodity used in baking food such as bread, chapati, and cakes which form part of daily meals for households.
“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,” Paloma Fernandes, Chief Executive Officer of the Cereal Millers Association (CMA) said.
In the 2023-2024 season, CMA millers procured the entire 1,458,881 bags produced. Kenya farms its wheat in Narok, Nakuru, Laikipia, Uasin Gishu, and Timau.
"While we remain committed to purchasing locally grown wheat and protecting our local farmers, 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 fertiliser and fuel, making local wheat more expensive than imported alternatives" Ms Paloma said.
She said that despite these challenges, CMA members operate under a duty remission scheme, which requires them to prioritise local wheat purchases at a premium price, before seeking import approvals, which allows them to import wheat at a 10 percent duty.
“For the 2024/2025 season, millers are purchasing local wheat at Sh5,300 per 90kg bag, higher than the global price of between Sh3,500 to Sh3700, a difference of close to Sh1,500 per 90kg bag,” the CEO said.
“However, this 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.
