Cereal Millers Urge Action to Stabilize Kenya’s Wheat Industry

Nairobi, Kenya – The Cereal Millers Association (CMA) has strongly refuted claims that millers are unwilling to purchase local wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion. The association argues that these allegations misrepresent the realities of Kenya’s wheat production and market dynamics.

According to the CMA, Kenya produces only about 7% of the 24 million bags of wheat consumed annually, with its members accounting for over 95% of the country’s milling. The association maintains that millers have consistently purchased all available local wheat each season. In the 2023-2024 season, they procured the entire 1,458,881 bags produced. For the current 2024-2025 season, they have already purchased 1,246,000 bags as of February 10, 2025.

The association also disputes claims that Narok alone has unsold wheat worth KES 50 billion, stating that this figure is highly exaggerated. They highlight that wheat farming extends beyond Narok to Nakuru, Laikipia, Uasin Gishu, and Timau, with the total national production valued at approximately KES 9 billion—not KES 50 billion, as alleged.

Despite their commitment to supporting local farmers, CMA points to structural challenges hindering the wheat sector’s growth, including high production costs, low yields, and limited mechanization. Kenyan wheat remains more expensive than imported alternatives, primarily due to high input costs such as fertilizer and fuel.

CMA members operate under a duty remission scheme that requires them to prioritize local wheat purchases at a premium price before receiving import approvals. Currently, millers are buying local wheat at KES 5,300 per 90kg bag, significantly higher than the global import price of KES 3,500–3,700. However, government delays in import approvals are exacerbating the situation, leading to high demurrage costs at the port. The association warns that if these issues persist, Kenya could face wheat shortages and rising consumer prices.

CMA calls on all stakeholders—farmers, policymakers, and the government—to work together in addressing inefficiencies, improving farm productivity, and eliminating trade barriers that threaten the wheat supply chain.

“We remain committed to supporting local farmers and strengthening Kenya’s wheat sector, but urgent reforms are needed to ensure sustainability,” said CMA CEO Paloma Fernandes.