Wheat millers have warned about potential hikes in the prices of flour, bread, and other wheat-based products as delays in approving imports threaten a supply shortage.
The Cereal Millers Association said delays in the release of the C60 permit, which allows approved millers to import specified quantities of wheat under the duty remission scheme, could disrupt supplies.
Under the scheme, millers must buy locally produced wheat before receiving permits to import additional supplies to process into flour for the local market.
The association said the delays come as global wheat prices and shipping costs continue to rise, raising the risk that higher production costs will be passed on to consumers.
Millers are seeking the timely release of the permits to avert a potential shortage and contain pressure on prices of wheat-based products.
The shortage follows the government’s decision on August 7, 2026, to raise the producer price of wheat to KSh5,100 per 90-kilogram bag for the 2026 season, up from KSh4,750 in 2025.
Wheat Prices Set to Rise
Cereal Millers Association (CMA) Chief Executive Paloma Fernandes on August 12 said millers had met their obligations under the Local Wheat Purchase Programme by committing to buy locally produced wheat at KSh5,100 per 90-kilogramme bag, up from KSh4,750.
Fernandes urged relevant authorities to release the pending import approvals, warning that further delays were increasing costs for millers.
She said the delays were exposing millers to additional demurrage, storage and financing expenses, which could eventually affect the wider wheat supply chain and consumers.
“Millers have fulfilled the requirements of the Local Wheat Purchase Programme and committed to purchase local wheat at KSh5,100 per bag,” Fernandes said.
“Every additional day of delay adds demurrage, storage and financing costs which do not benefit the farmer, the miller or the consumer. They are simply additional costs being introduced into the food supply chain.”
Kenya relies heavily on imports to meet its wheat needs, with local production accounting for only about 5 percent of domestic demand.
International wheat prices also rose by 5.8 percent in July, driven by escalating conflict and logistical challenges affecting shipping routes in the Black Sea region.
Why Government Raised Cost of Wheat Per Bag
Agriculture Cabinet Secretary Mutahi Kagwe said the new price aims to improve farmers’ incomes while ensuring a stable supply of wheat to millers and consumers.
“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, reaffirming its commitment to prioritizing locally produced grain and protecting domestic farmers,” said Kagwe.
The new price was agreed following consultations involving the Ministry of Agriculture, the Agriculture and Food Authority (AFA), the Cereal Growers Association (CGA), wheat farmers and cereal millers.
Agriculture Cabinet Secretary Mutahi Kagwe said the revised price was meant to improve farmers’ earnings while maintaining a stable, affordable wheat supply for millers and consumers.
The agreed price will apply at designated aggregation centres where the government has begun buying locally produced wheat ahead of any imports.
Government estimates indicate that wheat production could fall to about 1 million 90-kilogramme bags this season, down from 1.7 million bags harvested last year.
Kagwe said various interventions the government is undertaking will significantly expand local wheat production, even as this season’s growth is now projected at about 5%, down from an earlier projection of 10%.
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