Government doubles miraa prices

The government has announced new miraa prices, a move expected to affect farmers, consumers, and traders countrywide.

Under the revised pricing, Grade 1 miraa will now sell for Sh1,300 per kilogram, up from Sh700, while Grade 2 has doubled to Sh700 per kilogram. 

Alele consumers will now part with Sh1,000 per kilogram, from the previous Sh500. 

In a statement on February 15, Agriculture Cabinet Secretary Mutahi Kagwe said the adjustments align with the Crops Act of 2013.

“The Ministry of Agriculture and Livestock Development, through the Agriculture and Food Authority (AFA), is mandated to regulate, develop, and promote scheduled crops in accordance with the Crops Act 2013, the AFA Act 2013, the Crops (Miraa) Regulations 2023, and the Kenya Standard KNWA: 2940:2021 Miraa (Khat) Industry Code,” the statement read.

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Kagwe also noted that the Miraa Pricing Formula Committee, established under the Crops (Miraa) Regulations 2023, advises on pricing by reviewing factors such as production costs, supply and demand trends, and overall market conditions.

The price adjustments come amid ongoing discussions on regulating the miraa trade to ensure profitability for farmers while maintaining market stability. 

Over the years, prices have fluctuated due to factors including government regulations, export bans, taxation policies, and shifting demand.

To stabilise the sector, the government has periodically intervened by setting base prices, offering subsidies, and negotiating trade agreements with export markets.

With the new pricing structure, farmers now stand to benefit the most.

The new prices take effect immediately.