Kenya’s Agriculture and Livestock Development Minister, Mutahi Kagwe, has issued a stern warning to miraa cartels accused of exploiting local farmers by purchasing the stimulant at unfairly low prices and reselling it abroad at vastly inflated rates, particularly in Somalia.
Speaking in Meru County, Kagwe highlighted the growing issue where traders have been buying miraa from farmers for as low as 200 Kenyan shillings (about $1.50) per kilogram and reselling it in Somali markets for up to 7,000 shillings (around $52). This stark price disparity has sparked outrage among farmers, whom Kagwe described as being subjected to “exploitative and unsustainable” practices.
The minister expressed deep concern over the situation, noting that despite farmers putting in long hours of labor, it is often the middlemen who make the most profit. “It’s disheartening to see our farmers toil day and night, only for middlemen to reap massive profits at their expense,” Kagwe said, emphasizing the government’s commitment to putting an end to this exploitation and ensuring fair pricing for farmers.
In response to these issues, the Ministry of Agriculture has introduced new official farmgate prices to help protect farmers from the predatory behavior of traders. The revised pricing includes:
- Grade 1 miraa: 1,300 shillings per kilogram, up from 700.
- Grade 2 miraa: 700 shillings, up from 350.
- Alele variety: 1,000 shillings, up from 500.
These new prices came into effect following a week-long export boycott by farmers, who had been protesting the low rates offered by exporters. During this period, farmers highlighted how the price disparities had made it difficult for them to cover their production costs. In response, the government formed the Miraa Pricing Formula Committee under the 2023 Crops (Miraa) Regulations, tasked with evaluating the production costs and proposing new baseline prices for the crop.
Despite these reforms, many farmers, especially those in Meru’s Igembe region, have reported that traders are still reluctant to pay the new rates. This has led to large volumes of harvested miraa remaining unsold and consequently, post-harvest losses have become a growing concern.
Kagwe’s warnings to traders have become even more stringent. He made it clear that those who fail to adhere to the new pricing structure would be removed from the list of authorized buyers. “If you’re not ready to pay the set prices, you’ll be removed from the list. Go trade in maize or something else,” he stated, signaling a firm stance against those who undermine the well-being of farmers.
Miraa, also known as khat, is a leafy stimulant commonly chewed in East Africa and the Middle East. The crop plays a significant role in Kenya’s economy, contributing an estimated 13 billion shillings (roughly $100 million) annually. Somalia remains Kenya’s largest export market for miraa, followed by countries such as Israel and the Democratic Republic of Congo.
While the government’s interventions are seen as a step toward improving the welfare of miraa farmers, the ongoing reluctance of traders to comply with the new pricing rules suggests that the battle against exploitation in the miraa industry is far from over. As the government continues to push for fairer prices, it remains to be seen whether these efforts will have the desired effect on the ground and whether the miraa sector can achieve the sustainable growth that it needs.
