Agriculture Cabinet Secretary Mutahi Kagwe met with key stakeholders in the wheat subsector to address a growing dispute between wheat farmers and millers. The ongoing issue centers around the low prices that millers have been paying farmers, despite an existing binding agreement that sets wheat prices. This disagreement has led to demonstrations by farmers in regions such as Narok, Nakuru, Uasin Gishu, and Timau, where they voiced their frustrations about the poor compensation for their wheat, even though a price agreement had been established.
In response to the situation, Agriculture CS Mutahi Kagwe directed millers to purchase all the locally grown wheat that had not yet been bought, amounting to an estimated 400,000 bags. The government, through the Agriculture and Food Authority (AFA), will subsequently release the C60 Import licenses for the 21 millers under the Cereal Millers Association (CMA). At the same time, the government is aware of the backlog of 260,000 bags of imported wheat at the port of Mombasa, which are accruing demurrage fees at a rate of $0.3 per ton per day.
To date, approximately 1.3 million bags of wheat have been purchased by the millers. The CS called on farmers to sell their wheat at the set prices, which are Kshs. 5,300 per bag for Grade 1 wheat and Kshs. 5,200 per bag for Grade 2 wheat, urging them not to accept offers lower than these prices. The goal is to reinforce the trust in the 2010 tripartite agreement that was signed between the government, the Cereal Millers Association, and the Cereal Growers Association. This agreement was designed to ensure that millers would buy wheat at mutually agreed-upon prices, with the government acting as a guarantor.
To further safeguard the interests of the farmers and ensure that millers adhere to the agreement, a Wheat Sector Standing Committee has been established. This committee will be composed of members from the Ministry of Agriculture, the Cereal Millers Association (CMA), the Cereal Growers Association (CGA), the National Cereals and Produce Board (NCPB), Agriculture and Food Authority (AFA), local county governments, and farmers. The Ministry is also set to officially gazette this committee to solidify its authority.
The committee has been tasked with addressing the concerning decline in local wheat production, which now accounts for only 8% of the country’s annual wheat consumption, estimated at 26 million bags. In addition, the committee will oversee compliance with the local wheat purchase program, which requires millers to buy locally grown wheat before they are eligible for the 10% duty remission scheme under the East African Community (EAC) rules. This scheme also determines their import allocation quotas.
Agriculture CS Mutahi Kagwe emphasized the importance of using technology to enhance data collection and ensure transparency and accountability within the sector. By improving data accuracy, the goal is to increase farmer incomes and achieve greater food and nutrition security across the country.
The meeting was attended by various stakeholders, including Narok County Governor Patrick Ntutu, Senator Ledama ole Kina, National Assembly Deputy Speaker Gladys Boss, and several other political representatives. The session also featured officials from the Ministry of Agriculture, the National Cereals and Produce Board (NCPB), the Agriculture and Food Authority (AFA), the Cereal Growers Association (CGA), the Cereal Millers Association (CMA), as well as a large number of farmers. The collaborative effort aims to address the challenges faced by wheat farmers and restore a fair and functioning system in the wheat subsector.
