The Kenyan government has announced a significant increase in miraa prices, aligning them with prevailing market trends. This decision, disclosed in a statement on Saturday by Agriculture Cabinet Secretary Mutahi Kagwe, will see the cost of miraa rise substantially across different grades.
According to the new pricing structure, a kilogram of Grade 1 miraa will now cost Ksh.1,300, up from Ksh.700. The price of Grade 2 miraa has been revised from Ksh.350 to Ksh.700 per kilogram, while a kilogram of Alele will now cost Ksh.1,000, an increase from the previous Ksh.500.
This price adjustment follows extensive discussions held on Thursday between officials from the Ministry of Agriculture, miraa farmers, traders, and the Miraa Pricing Formula Committee. The committee is responsible for advising on the pricing of Kenyan miraa and plays a crucial role in ensuring fair market rates for stakeholders in the sector.
“In executing its duties, the committee reviews production data, cost, supply, and demand, among other parameters, to advise the sub-sector,” read part of the statement issued by the Ministry of Agriculture.
Miraa, a stimulant crop predominantly grown in Meru County, holds significant economic value in Kenya. According to the Agriculture and Food Authority (AFA), the miraa sector contributes approximately Ksh.13 billion annually to the country’s economy. The crop provides livelihoods for thousands of farmers, traders, and transporters, making it a vital economic pillar in various regions.
Kenya’s miraa exports are primarily destined for international markets, including Somalia, Israel, and the Democratic Republic of Congo (DRC). The sector has faced challenges in recent years, including bans and restrictions in certain countries, but it remains a lucrative industry for farmers and traders.
While the government’s move to increase miraa prices may benefit farmers by improving their earnings, it could also pose challenges for traders and consumers. Higher prices may reduce demand, particularly in international markets, where competition from other suppliers remains fierce. Additionally, local traders may face difficulties adjusting to the new pricing structure, potentially affecting the supply chain.
The government, through the Agriculture Ministry, has reiterated its commitment to ensuring that miraa farmers and traders receive fair compensation for their produce while maintaining Kenya’s competitive edge in the global market. The Miraa Pricing Formula Committee will continue monitoring the sector to ensure sustainable pricing and market stability.
As the new prices take effect, stakeholders in the miraa industry will be keen to observe how the adjustments influence the market, both locally and internationally.
