✕

Millers reject claims of sidelining local wheat farmers

Business
By David Njaaga | Mar 09, 2025
Cereal Millers Association CEO Paloma Fernandes during a past press conference. [File, Standard]

The Cereal Millers Association (CMA) has refuted claims that millers are prioritising wheat imports over locally produced wheat, saying the accusations are misleading and unfounded.

In a statement, CMA Chief Executive Officer Paloma Fernandes said millers have consistently purchased nearly all available local wheat at premium prices to support farmers.

She noted that imports are essential to bridge Kenya's wheat deficit, with local production meeting only 7 per cent of the annual demand.

"Millers have purchased all available local wheat, with imports necessary to ensure a steady supply of chapatis, bread, mandazis, and biscuits," said Fernandes.

Kenya consumes 2.1 million metric tonnes of wheat annually against a local production of 153,000 metric tonnes, leaving a 93 per cent gap.

Between July 2024 and February 2025, millers imported 1.36 million metric tonnes of wheat under the East African Community (EAC) duty remission framework.

Fernandes observed that unlike millers in other EAC countries, Kenyan millers pay premium prices for local wheat before importing, making them less competitive in export markets.

CMA proposed reducing production costs, offering tax incentives, and introducing subsidies on essential farm inputs as measures to increase local wheat production from 8 per cent to at least 45 per cent of national demand within five years.

Agriculture and Livestock Cabinet Secretary Mutahi Kagwe said on Monday, March 3, that the National Cereals and Produce Board (NCPB) would collect 321,000 bags of wheat from farmers from Tuesday, March 4.

He said farmers would receive payments within 30 days of delivery.

"A memorandum of understanding between NCPB and millers will see wheat collected by millers from NCPB, with payments made within 14 to 21 days," said Kagwe after a meeting at Kilimo House in Nairobi.

CMA urged policymakers to base discussions on accurate data to safeguard Kenya's food security, saying better coordination and transparent record-keeping would enhance efficiency in wheat purchasing and inform policy decisions.

Share this story
Kenya courts foreign contractors to boost affordable housing projects
Kenya is seeking to attract foreign building materials manufacturers to establish local production plants
Slash cost of doing business, CEOs urge government
CEOs called for expanded access to affordable credit through lower lending rates, simpler loan requirements and flexible repayment terms, particularly for small and medium-sized enterprises.
Dangote buys 25pc of Kenya Pipeline for Sh42.5b
Dangote, founder and chief executive of Dangote Industries Ltd, disclosed the deal at an event in London on Wednesday, according to Bloomberg.
Nairobi's financial hub status puts capital city on global investors' radar
Nairobi has earned a spot among the top five cities to watch in the latest Oxford Economics Global Cities Index 2026, due to its financial hub status.
Kenyan AI innovators win US$10,000 at inaugural Meta AI Academy Pitchathon
Kenyan AI startups Neural Labs Africa and Me-Nasoma have won US$10,000 combined at Meta’s inaugural Kenya Pitchathon.
.
RECOMMENDED NEWS