Cereal Millers Refute Misleading Claims On Local Wheat Purchases

The Cereal Millers Association (CMA) strongly refutes the misleading claims published in sections of the media, suggesting that millers have prioritized wheat imports over local wheat to the detriment of the farmers.

CMA and its members remain steadfast in supporting local wheat farmers while ensuring that 40 million of their consumers can access affordable and nutritious wheat products. The claims that millers prioritize imports over local wheat are unfounded and misleading. The data clearly shows that millers have purchased nearly all available local wheat, with imports being essential to bridge the country’s wheat deficit.

Over the past two decades, millers have consistently purchased all locally produced wheat at premium prices to support and incentivize production. However, Kenya’s wheat output has declined and remains insufficient to meet demand. The country produces only 7% of its annual requirement—approximately 1.7 million bags (153,000 metric tonnes)—while national consumption stands at 24 million bags (2.1 million metric tonnes). Additionally, Kenya’s wheat harvest is spread over eight months (July to March), meaning supply is not readily available all at once.

To ensure a steady supply of chapatis, bread, mandazis, and biscuits, Kenya must bridge a 93% wheat deficit through imports. Between July 2024 and February 2025, a total of 1,360,607 metric tonnes of wheat has already been imported. These imports have been approved under the East African Community (EAC) duty remission framework. While millers across the East African region pay a 10% duty on imported wheat, only Kenyan millers are required to pay premium prices to local farmers before being allowed to import. In contrast, millers in other EAC countries purchase all wheat at market prices to the detriment of Kenyan millers who therefore cannot access or be competitive in export markets.

Proposed Solutions for a sustainable Wheat Industry

The CMA is committed to helping Kenyan farmers increase wheat production from 8% to at least 45% of national demand within the next five years. This requires targeted interventions, including reducing production costs, providing tax incentives, and offering subsidies for essential farm inputs. Enhancing the current agricultural land policy, encouraging cooperative models and contract farming could further enhance productivity and increase yields.

To stabilize Kenya’s wheat industry, the government must align local wheat prices with production costs to prevent market inefficiencies. Input-level subsidies on fertilizers and seeds can lower production costs, increasing supply and reducing market prices. Meanwhile, output prices should be driven by market forces to reflect supply and demand dynamics, ensuring efficiency and sustainability. This approach will enhance food security and support the long-term viability of wheat production. This strategy also helps prevent market distortions and supports the long-term viability of wheat production in Kenya.

To ensure a sustainable wheat supply chain, the Cereal Millers Association (CMA) emphasizes the need for improved data management and coordination in the sector. Accurate and transparent record-keeping will enhance efficiency in wheat purchasing and inform better policy decisions.

CMA urges policymakers and all stakeholders to base discussions on accurate data rather than misinformation to safeguard Kenya’s food security.  We remain open to engagement and collaboration in finding long-term solutions that will strengthen Kenya’s wheat sector and improve local production.

Read Also: Millers Seek to Import Wheat from India as Deficit Hits Kenya