Government increases wheat prices to Sh 5,100 per 90 kg bag

Narok wheat farmers say they were struggling to sell their produce as buyers offered prices below the cost of production. [Courtesy]

The Government has raised the producer price of locally produced wheat to Sh5,100 per 90-kilogramme bag.

The price increase came days after cereal farmers in Narok County issued a 72-hour ultimatum demanding better prices or stage demonstrations in Narok Town.

The new price, announced by the Ministry of Agriculture and Livestock Development on August 7, 2026,  in a press release, is an increase of Sh350 from last year's Sh4,750.

This comes amid growing anger among grain farmers over what they describe as unsustainable returns against rising production costs.

The farmers had demanded wheat price of Sh5,378 per 90-kilogramme bag, which they said was recommended following a cost-of-production study commissioned by the Government and conducted by the Tegemeo Institute.

Addressing journalists at the Narok Cereal Board grounds on Monday last week, Narok Cereal Growers Association chairman Standley Koonyo appealed to Agriculture Cabinet Secretary Mutahi Kagwe to intervene on the plight of grain farmers.

Koonyo said wheat farmers were struggling to sell their produce as buyers offered prices below the cost of production.

He lamented that private millers were buying maize at Sh3,400 per 90-kilogramme bag, while the National Cereals and Produce Board was offering Sh3,900. Koonyo  noted that wheat was fetching about Sh4, 500 a bag—a price farmers rejected as uneconomical.

“We agreed with the government that maize should be bought at Sh5,000 per 90-kilogram bag and wheat at Sh5,378. Those are the prices that were arrived at after an extensive cost-of-production study and they should now be implemented,” he said.

The farmers warned that failure to address their demands within 72 hours would paralyse business in Narok Town.

The Government in the press release signed by CS Kagwe announced the new Sh5,100 wheat producer price following consultations coordinated by the Agriculture and Food Authority (AFA) involving the Cereal Growers Association, wheat farmers and cereal millers.

“The decision follows extensive consultations coordinated by the Agriculture and Food Authority (AFA) involving the Cereal Growers Association (CGA), representatives of wheat farmers and cereal millers,” the Ministry said.

The Government said the agreed price would apply at designated aggregation centres where it has commenced wheat mop-up before any wheat imports are considered.

“The agreed price will apply at designated aggregation centres where the Government has commenced the ongoing wheat mop-up exercise ahead of any wheat importation,” the Ministry said.

The announcement, however, falls short of the Sh5, 378 price demanded by the Narok farmers.

Another farmer, David Kilesi, said growers had agreed that Grade One wheat should fetch Sh5, 378 per bag, while Grades Two and Three would be bought at Sh5,278.

“We do not understand what changed after the government commissioned the study. Farmers cannot continue producing at a loss while the cost of fuel, pesticides, fertiliser and machinery continues to rise,” Kilesi said.

Farmers also accused the Government of increasing taxes on fuel, pesticides and agricultural machinery spare parts during the farming season, pushing up costs.

The Government expects about 1 million 90-kilogramme bags of wheat this season, down from approximately 1.7 million bags harvested last year.

It attributed the decline to adverse weather and a shift by farmers to barley after the crop fetched about Sh5,300 a bag last season. Barley prices have since fallen to between Sh4,200 and Sh4,500, making wheat relatively more competitive.

More than 2,000 wheat farmers from Narok, Nakuru, Meru, Laikipia, Nyandarua and Uasin Gishu are expected to benefit from the new price.

The Government said it would support the sector through crop-specific fertiliser subsidies, improved high-yielding and climate-resilient varieties, mechanisation, quelea-bird control, land commercialisation and climate-smart agriculture.

It said wheat production growth was now projected at about five per cent, down from an earlier estimate of 10 per cent.

Farmers also criticised the importation of cereals during the local harvesting period, arguing that imported grain floods the market and depresses prices.

Joseph ole Nchoe said the Government had failed to adequately protect local producers.

“The study established what it costs to produce wheat and maize. We cannot understand why millers are offering prices that are far below those recommendations,” he said.

He said farmers were already grappling with poor harvest caused by erratic weather and could not withstand further pressure from low market prices.

The Government maintains that the new agreement is a “win-win outcome” for farmers and millers because it offers better returns to producers while taking into account the need to keep consumer prices affordable.

“The consultative approach adopted by AFA and industry stakeholders demonstrates that collaboration across the wheat value chain can protect local production, support the milling industry and safeguard national food security,” the Ministry said.