Wheat millers and farmers end row, strike deal over prices

Agriculture Cabinet Secretary Mutahi Kagwe during a meeting with wheat millers and farmers on February 26, 2025.

 

The row between wheat farmers and millers has been resolved after a day-long meeting convened by Agriculture Cabinet Secretary Mutahi Kagwe.

There have been demonstrations by farmers in Narok, Nakuru, Uasin Gishu, and Timau over the poor prices paid by millers, despite the existence of a binding agreement between the two parties, and set prices for wheat.

In the resolutions, Kagwe directed that the millers purchase all the locally grown wheat that has not been purchased, amounting to 400,000 bags, subsequent to which the government, through the Agriculture and Food Authority (AFA) will release the C60 import licenses for the 21 millers under the Cereal Millers Association (CMA).

“A total shipment of 260,000 bags imported by the millers is lying at the port of Mombasa and attracting a demurrage fee of US$0.3 cents per ton per day. A total of 1.3 million bags have been bought so far.

Further, the CS urged farmers to sell their wheat at the set prices of Sh5,300 per bag for Grade 1 wheat and Sh5,200 per bag for Grade 2, and not to accept lower prices.

A Wheat Sector Standing Committee composed of the ministry, county governments, and other stakeholders was formed to restore trust in the tripartite agreement signed in 2010 to have millers buy wheat at mutually agreed prices.

“The Ministry will gazette this committee. Key among its goals will be halting the decline in local production, which has fallen to eight per cent of the annual consumption of 26 million bags,” a statement from the ministry said in part.

It said the committee will it will enforce compliance with the local wheat purchase programme, which obliged millers to purchase locally before they can qualify for the 10 per cent duty remission scheme under the East African Community (EAC) rules, and get their import allocation quota. 

The CS implored the committee to leverage on technology to curate reliable data, restore credibility, accountability, and transparency in the sector, “as this will lead to better incomes for farmers’ incomes, and achieve food and nutrition security.”

Present at the meeting were Narok County Governor Patrick Ntutu, Narok Senator

Ledama Olekina, National Assembly's Deputy Speaker Gladys Boss and MPs

Agnes Pareiyo (Narok North) and Silvester Ntutu (Narok South), State Department for Agriculture PS Kipronoh Ronoh and representatives from Agriculture and Food Authority (AFA) the National Cereals Board (NCPB), the Cereal Growers Association (CGA), the Cereal Millers Association (CMA) and farmers.