The Cereal Millers Association (CMA) has dismissed claims that millers are unwilling to buy local wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion. According to CMA, these allegations misrepresent the realities of wheat production, procurement, and market dynamics in Kenya.
Kenya produces only a small fraction of its wheat needs, with local farmers supplying about 7% of the 24 million bags consumed annually. CMA members, who account for over 95% of the wheat milling in Kenya, assert that they have consistently purchased all available local wheat every season for the past 15 to 20 years.
In the 2023-2024 season, CMA millers procured the entire 1,458,881 bags produced. For the 2024-2025 season, as of February 10, 2025, they had already purchased 1,246,000 bags, reaffirming their commitment to supporting local farmers.
Inaccuracies in Wheat Stock Claims
CMA also refuted reports suggesting that Narok alone has Kshs 50 billion worth of unsold wheat. According to their assessment, wheat farming in Kenya is not limited to Narok but extends to other regions such as Nakuru, Laikipia, Uasin Gishu, and Timau. The total national value of wheat produced across these areas for the current season is estimated at Kshs 9 billion, based on the expected 1.7 million bags at Kshs 5,300 per bag. The figure of Kshs 50 billion is highly exaggerated, as it would equate to 10 million bags—approximately six years’ worth of local production.
Paloma Fernandes O.G.W, Chief Executive Officer of CMA, stated, “These claims are misleading and do not reflect the realities of wheat production and market dynamics in Kenya. Millers have continuously supported local farmers by purchasing their wheat at competitive prices.”
Challenges Facing Local Wheat Farming
Despite millers’ commitment to purchasing local wheat, the industry faces structural challenges, including high production costs, low yields per acre, and limited mechanization, making Kenyan wheat less competitive than imports. Farmers struggle with expensive inputs such as fertilizer and fuel, which drive up the cost of local wheat production.
CMA members operate under a duty remission scheme, requiring them to prioritize local wheat purchases at a premium price before seeking import approvals. Currently, local wheat is being purchased at Kshs 5,300 per 90kg bag, which is significantly higher than the global import parity price of between Kshs 3,500 and Kshs 3,700 per bag. This price difference of approximately Kshs 1,500 per bag underscores the financial burden on millers.
“Our commitment to local farmers remains unwavering. However, we must address the fundamental issues of high production costs and inefficiencies in the supply chain to sustain the industry in the long run,” added Paloma.
Threats to Market Stability
A key concern for millers is the severe delay in government import approvals, which has resulted in high demurrage costs at the port. If these bottlenecks persist, Kenya could face market instability, wheat shortages, and rising consumer prices.
CMA reiterated its commitment to strengthening the local wheat value chain but emphasized that collaboration among all stakeholders—farmers, policymakers, and the government—is crucial. Addressing inefficiencies, improving farm productivity, and eliminating trade barriers will be essential to ensuring a sustainable wheat sector in Kenya.
“We urge the government to streamline the import approval processes to prevent disruptions in wheat supply and ensure price stability for consumers,” said Paloma.
