AFA Implements Measures to Support Local Wheat Farmers Amid Rising Imports
TSA | March 6, 2025 | Agriculture, Nairobi
The Agricultural and Food Authority (AFA) has outlined a series of measures to support local wheat farmers as Kenya continues to balance domestic production with the rising demand for wheat and wheat-based products.
Current Wheat Production and Market Status
According to AFA, the total local wheat harvest from July 2024 to March 2025 stands at 1,710,358 bags (90 kg each). Of this, millers have mopped up 1,388,762 bags since August, while 321,596 bags remain with farmers and marketing agents.
The bulk of the unsold wheat is concentrated in Upper Narok, accounting for 130,828 bags. Additionally, the remaining wheat yet to be harvested in Upper Narok and Timau 2 is projected at 80,000 bags.
In terms of wheat imports, Kenya brought in 1,407,129 metric tonnes (MT) (approximately 15,634,767 bags) over the last eight months, against a projected allocation of 3,246,000 MT (36 million bags).
Kenya’s Dependence on Wheat Imports
AFA has provided insights into the longstanding wheat import trends, stating that Kenya has relied heavily on imported wheat for the past 15 years. The country’s annual wheat demand ranges between 2.2 million to 2.4 million MT, while local production only meets about 8% of total consumption, with 92% being imported.
In 2023, Kenya’s total wheat production was 135,000 MT, while consumption stood at 2.2 million MT, resulting in a significant deficit of 1.9–2.2 million MT. This shortfall has been bridged through imports, primarily sourced from Russia, Ukraine, and the European Union (EU).
A 2021 survey by AFA indicated that wheat production had been declining over the years, with imports steadily rising. The findings revealed:
- Production declined from 256,000 MT in 2010 to 180,000 MT in 2020.
- Wheat imports rose from 845,000 MT in 2010 to 2.2 million MT in 2020.
The decline in local production has been attributed to rising production costs, stagnant farm-gate prices, low productivity, land subdivisions, and short-term land leases that discourage investment in modern agricultural technologies.
Government Interventions to Boost Local Wheat Farming
The government, through AFA, is addressing these challenges under the Better Extension Training and Agricultural (BETA) Programme by implementing key interventions, including:
- Subsidized fertilizers to lower production costs.
- Enforcement of minimum guaranteed prices to protect farmers.
- E-Extension services to provide real-time agronomic support.
- Soil testing to enhance productivity and improve yields.
- Improved seed varieties to increase local wheat output.
These initiatives have contributed to a steady rise in local wheat production over the last three years.
Government Directive on Wheat Storage
To enhance efficiency in wheat distribution, the Ministry of Agriculture and Livestock Development recently held a meeting with stakeholders, including the Cereal Growers Association (CGA), Cereal Millers Association (CMA), Marketing Agents, and government officials.
During the meeting, the Cabinet Secretary for Agriculture directed that all wheat in stock be transported to the nearest NCPB (National Cereals and Produce Board) stores by today to streamline storage and ensure proper market access for farmers.
Kenya’s Trade Position in the EAC and Wheat Import Policy
As a key member of the East African Community (EAC), Kenya plays a crucial role in regional trade agreements under the Customs Union and Common Market Protocols.
Wheat is classified as a trade-sensitive product under the EAC’s Common External Tariff (CET). This classification is designed to:
- Protect local farmers and industries from unfair competition.
- Prevent cheaper imports from undercutting domestic wheat prices.
- Discourage dumping of foreign wheat into the local market.
Under the EAC tariff regime, sensitive products attract a 35% import duty, compared to the standard 25% for other goods. However, Kenya successfully negotiated for a lower import tax rate of 10% to facilitate wheat imports, given the country’s widening production deficit.
The Wheat Purchase Scheme (WPS) and Its Impact
Since the adoption of Kenya’s 2010 Constitution, the government introduced the Wheat Purchase Scheme (WPS) in January 2010 to promote local production and regulate wheat imports. Under the scheme:
- Millers are required to purchase all locally grown wheat at government-set prices before being allowed to import wheat.
- Millers pay a 10% import duty, significantly lower than the standard 35% applied to sensitive products.
- The government allocates wheat import quotas on a pro-rata basis to ensure market stability.
In July 2020, the WPS was transferred to AFA, with oversight from the National Treasury, Cereal Millers Association (CMA), and Cereal Growers Association (CGA).
While other EAC member states import wheat at 10% duty without restrictions, Kenya maintains its precondition requiring millers to first buy local wheat to safeguard domestic production.
Strengthening Local Wheat Farming
AFA remains committed to enhancing local wheat production by:
- Providing financial and technical support to farmers.
- Expanding the subsidized input program to lower production costs.
- Promoting mechanized and conservation agriculture to boost yields.
- Strengthening market linkages to improve farmer earnings.
- Encouraging investment in wheat value chains to increase competitiveness.
With these measures in place, Kenya aims to reduce its reliance on wheat imports while ensuring local farmers receive the necessary support to thrive in a competitive market.
AFA Implements Measures to Support Local Wheat Farmers Amid Rising Imports