A resolution to the ongoing standoff between wheat farmers and millers in the country is on the horizon following a successful intervention by Agriculture Cabinet Secretary (CS) Mutahi Kagwe. After a day-long meeting involving stakeholders in the wheat sector and millers, a truce was brokered to address the issues causing friction between the two parties.
Farmers from Narok, Nakuru, Uasin Gishu, and Timau had raised concerns over the low prices paid by millers for wheat, despite an existing agreement that set fixed prices. This had led to widespread dissatisfaction among the farming community, as they felt the pricing structure was unfair and not aligned with the cost of production.
The breakthrough came during a meeting at Kilimo House, where CS Kagwe directed that millers purchase the remaining locally grown wheat, which amounts to 400,000 bags. In addition, the government, through the Agriculture and Food Authority (AFA), will issue C60 Import licenses to the 21 millers who are members of the Cereal Millers Association (CMA). This is seen as a crucial step to help alleviate the supply gap caused by ongoing disputes and ensure that the wheat reaches local markets.
Further complicating the situation was the fact that 260,000 bags of wheat imported by the millers are currently sitting at the Mombasa port, incurring a daily demurrage fee of US $0.30 per ton. So far, 1.3 million bags of wheat have been purchased by the millers.
During the meeting, CS Kagwe also urged farmers not to accept lower prices and insisted that they sell their wheat at the agreed-upon rates. These rates are Ksh. 5,300 per bag for Grade 1 wheat and Ksh. 5,200 per bag for Grade 2 wheat. The government has taken steps to ensure that these prices are adhered to by establishing a Wheat Sector Standing Committee. This committee, which includes representatives from the Ministry of Agriculture, CMA, CGA, National Cereals Board (NCPB), AFA, County governments, and farmers, aims to restore confidence in the wheat sector.
The committee’s mandate will focus on upholding the 2010 tripartite agreement, which was signed between the CMA, CGA, and the government. Under this agreement, the government acts as a guarantor to ensure that millers buy wheat at mutually agreed prices while safeguarding the interests of farmers. The committee’s key objective will be to halt the decline in local wheat production, which has dropped to just 8% of the annual national consumption of 26 million bags.
One of the committee’s critical roles will be to enforce compliance with the local wheat purchase program, which stipulates that millers must first purchase locally grown wheat before they can qualify for the 10% duty remission scheme under the East African Community (EAC) rules. This scheme is vital for securing the import allocation quotas for millers.
CS Kagwe also emphasized the importance of leveraging technology to enhance transparency, accountability, and data reliability within the wheat sector. By doing so, the government aims to improve the livelihoods of farmers, ensure food security, and support the broader agricultural sector.
Among the key figures present at the meeting were Narok County Governor Patrick Ntutu, Senator Ledama ole Kina, National Assembly Deputy Speaker Gladys Boss, and Principal Secretary for the State Department for Agriculture Dr. Kipronoh Ronoh, alongside various representatives from AFA, NCPB, CMA, CGA, and local farmers.
This development brings much-needed relief to wheat farmers, who have long struggled with pricing issues, and offers a hopeful outlook for the future of wheat production in the country.
