Gov't raises wheat prices to Ksh.5,100 per bag

In a statement on Friday, Agriculture Cabinet Secretary Mutahi Kagwe said the new price is aimed at improving farmers' incomes while ensuring a stable supply of wheat to millers and consumers.

The decision follows consultations led by the Agriculture and Food Authority (AFA), bringing together the Cereal Growers Association, wheat farmers and cereal millers.

The agreed price will apply at designated aggregation centres where the government has started buying locally produced wheat ahead of any imports.

About one million 90-kilogram bags are expected to be harvested this season, down from approximately 1.7 million bags last year.

The ministry attributed the decline to adverse weather conditions and a shift by farmers to barley, which fetched about Ksh. 5,300 per bag last season.

However, barley prices have since fallen to between Ksh.4,200 and Ksh.4,500 per bag, making wheat farming more attractive to farmers.

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 the agreement would give farmers better returns while considering the need to keep wheat products affordable for consumers.

The ministry also said it is working to reduce Kenya's dependence on imported wheat by increasing local production and lowering farming costs.

Among the measures being implemented are expanding fertilizer subsidies for wheat farmers, promoting high-yielding and climate-resilient varieties, increasing mechanisation and expanding commercial wheat farming.

The government also plans to strengthen efforts to control quelea birds, discourage excessive subdivision of agricultural land and promote long-term land leasing for commercial wheat production.

Wheat production is expected to grow by about five per cent this season, lower than the earlier projection of 10 per cent due to the effects of adverse weather.