Government announces new wheat prices

Gov't announces new wheat prices for 2025/26 season. [File, Standard]

The Agriculture and Food Authority (AFA) has set new minimum prices for wheat in the 2025/26 season following a stakeholder workshop held in June and a follow-up negotiation meeting on July 3.

A 90kg bag of Grade 1 wheat (bushel weight of 78 and above) will now sell at a minimum price of Sh4,750, while Grade 2 (bushel weight 75-77.9) will go for Sh4,650. Grade 3 wheat (bushel weight below 75) will be sold under a willing buyer-willing seller arrangement.

The pricing, AFA said, is based on the cost of production, a structured formula, and stakeholder negotiations.

"The goal is to offer farmers fair compensation and encourage increased production," the Authority Director General Bruno Linyiru said in a statement.

The agency also announced that millers seeking to benefit from the Duty Remission Scheme (DRS) for wheat imports will only be approved if they commit to buying local wheat in proportion to their allocated import quotas.

The allocation process considered factors such as past performance in local wheat purchases and import quota utilization, and milling capacity.

"All participating millers will be required to purchase locally produced wheat in quantities proportional to their allocated import quotas," Linyiru added.

The Authority also retained the wheat grading system used in the 2024/25 season and announced that aggregation will be handled by registered and vetted agents.

A handling fee of Sh220 per 90kg bag, shared equally between the farmer and the miller, will cover weighing, offloading, and testing.

According to Linyiru, the Wheat Purchase Programme is part of efforts to boost domestic wheat production and reduce Kenya's dependency on imports.

All resolutions made during the consultations are final, AFA said, noting that any amendments will be communicated after further stakeholder engagement.