Cereal Millers Association Refutes Claims on Local Wheat Purchases, Calls for Policy Reforms to Strengthen Kenya’s Wheat Sector

The Cereal Millers Association (CMA) has firmly refuted recent claims alleging that millers are unwilling to purchase locally grown wheat, leaving farmers in Narok County with unsold stock worth Kshs 50 billion. In a press statement, CMA clarified that such assertions misrepresent the realities of Kenya’s wheat production, procurement, and market dynamics.

Kenya produces only a small portion of its national wheat demand, with local farmers supplying approximately 7% of the 24 million bags consumed annually. CMA members, who account for over 95% of wheat milling in the country, have consistently procured all available local wheat every season for the past 15-20 years.

CMA’s Commitment to Local Wheat Purchases

“We have consistently purchased all available local wheat produced by farmers every season. For instance, in the 2023-2024 season, CMA millers procured the entire 1,458,881 bags of locally grown wheat,” said Paloma Fernandes O.G.W, Chief Executive Officer of CMA. “For the 2024-2025 season, as of February 10, 2025, our members had already purchased 1,246,000 bags, demonstrating our unwavering commitment to supporting local farmers.”

The association further clarified that the claim of unsold wheat worth KES 50 billion in Narok is misleading. Wheat farming in Kenya extends beyond Narok to regions such as Nakuru, Laikipia, Uasin Gishu, and Timau. Based on the estimated 1.7 million bags of wheat expected this season, at KES 5,300 per bag, the total national value stands at approximately KES 9 billion—far from the alleged KES 50 billion.

“To put it into perspective, KES 50 billion worth of unsold wheat would equate to approximately 10 million bags, which is roughly six years’ worth of local production. Such figures are simply inaccurate,” noted a senior CMA spokesperson.

Structural Challenges Hindering Local Wheat Production

Despite CMA’s continued efforts to support local wheat farmers, several structural challenges continue to hinder the growth of the industry. High production costs, low yields per acre, and limited mechanization have made Kenyan wheat less competitive compared to imported wheat. Farmers also struggle with high input costs, including fertilizer and fuel, making local wheat significantly more expensive.

“Local wheat is being purchased at KES 5,300 per 90kg bag, while the global import parity price ranges between KES 3,500 and KES 3,700,” explained a CMA representative. “That’s a price difference of about KES 1,500 per bag, making local wheat less competitive in the market.”

Although CMA millers operate under a duty remission scheme requiring them to prioritize local wheat purchases before seeking import approvals, the industry faces significant challenges due to government delays in approving wheat imports. These delays have led to increased demurrage costs at the port, further threatening market stability.

Call for Policy Reforms to Strengthen Kenya’s Wheat Sector

The CMA has urged policymakers and the government to work together with farmers and industry stakeholders to address inefficiencies and improve wheat production in Kenya.

“If these bottlenecks persist, Kenya risks market instability, potential wheat shortages, and increased consumer prices,” warned Paloma Fernandes. “A sustainable wheat sector requires improved farm productivity, reduced production costs, and the removal of trade barriers that disrupt supply chains.”

CMA remains committed to supporting local wheat farmers and strengthening Kenya’s wheat value chain. The association continues to advocate for policies that promote long-term sustainability in the industry while ensuring that consumers have access to affordable wheat products.