Kenya’s cereal millers have strongly denied allegations that they are neglecting local wheat farmers in favor of imports. This comes amid accusations that millers are unwilling to purchase local wheat, leaving farmers, particularly in Narok County, with unsold stock worth Sh50 billion.
The Cereal Millers Association (CMA), which represents over 95% of the wheat milling industry in Kenya, has dismissed these claims as factually inaccurate. According to CMA CEO Paloma Fernandes, local farmers supply only about 7% of the 24 million bags of wheat consumed annually in Kenya. She affirmed that millers have consistently purchased all available local wheat every season for the past 15-20 years.
During the 2023-2024 season, CMA millers procured the entire 1,458,881 bags of locally produced wheat. For the 2024-2025 season, as of February 10, 2025, 1,246,000 bags had already been purchased, reinforcing millers’ commitment to supporting local farmers.
Fernandes further clarified that the claim of Sh50 billion worth of unsold wheat in Narok alone is grossly exaggerated. Wheat farming in Kenya is not limited to Narok but extends to other regions such as Nakuru, Laikipia, Uasin Gishu, and Timau. The total value of wheat produced nationwide this season is estimated at KSh9 billion, far from the alleged KSh50 billion. To put this into perspective, KSh50 billion worth of unsold wheat would equate to 10 million bags, which is approximately six years’ worth of local production.
Despite millers’ continued support for local wheat, structural challenges in the sector persist. High production costs, low yields per acre, and limited mechanization have made Kenyan wheat less competitive compared to imports. Farmers struggle with expensive inputs such as fertilizer and fuel, making local wheat more costly than imported alternatives.
Under the duty remission scheme, CMA members must prioritize purchasing local wheat at a premium price before seeking import approvals. For the 2024-2025 season, local wheat is being bought at KSh5,300 per 90kg bag, significantly higher than the global import parity price of KSh3,500 to KSh3,700, a difference of nearly KSh1,500 per bag.
However, delays in government import approvals are disrupting this delicate balance. The resulting demurrage costs at the port threaten market stability, potentially leading to wheat shortages and higher consumer prices.
Fernandes urged the government to address these bottlenecks and implement reforms to enhance wheat sector efficiency, ensuring both farmers and consumers benefit from a stable and competitive market.
