Millers reject claims of sidelining local wheat farmers

Business
By David Njaaga | Mar 09, 2025
Cereal Millers Association CEO Paloma Fernandes during a past press conference. [File, Standard]

The Cereal Millers Association (CMA) has refuted claims that millers are prioritising wheat imports over locally produced wheat, saying the accusations are misleading and unfounded.

 In a statement, CMA Chief Executive Officer Paloma Fernandes said millers have consistently purchased nearly all available local wheat at premium prices to support farmers.

She noted that imports are essential to bridge Kenya’s wheat deficit, with local production meeting only 7 per cent of the annual demand.

“Millers have purchased all available local wheat, with imports necessary to ensure a steady supply of chapatis, bread, mandazis, and biscuits,” said Fernandes.

Kenya consumes 2.1 million metric tonnes of wheat annually against a local production of 153,000 metric tonnes, leaving a 93 per cent gap.

Between July 2024 and February 2025, millers imported 1.36 million metric tonnes of wheat under the East African Community (EAC) duty remission framework.

Fernandes observed that unlike millers in other EAC countries, Kenyan millers pay premium prices for local wheat before importing, making them less competitive in export markets.

CMA proposed reducing production costs, offering tax incentives, and introducing subsidies on essential farm inputs as measures to increase local wheat production from 8 per cent to at least 45 per cent of national demand within five years.

Agriculture and Livestock Cabinet Secretary ="https://www.standardmedia.co.ke/business/business/article/2001513055/mutahi-kagwe-ncpb-to-mop-up-wheat-stock-payments-to-farmers-within-30-days"> Mutahi Kagwe said on Monday, March 3, that the National Cereals and Produce Board (NCPB) He said farmers would receive payments within 30 days of delivery.

“A memorandum of understanding between NCPB and millers will see wheat collected by millers from NCPB, with payments made within 14 to 21 days,” said Kagwe after a meeting at Kilimo House in Nairobi.

CMA urged policymakers to base discussions on accurate data to safeguard Kenya’s food security, saying better coordination and transparent record-keeping would enhance efficiency in wheat purchasing and inform policy decisions.

Share this story
Struggling Japanese automaker Nissan replaces CEO
Nissan said the leadership change was meant to "achieve the company's short- and mid-term objectives while positioning it for long-term growth" but did not elaborate.
Kingdom Bank, Canon Group unveil 'Faidi Dada' motor cover for women
The Faidi Dada Motor Cover enhances existing services for over 6,000 women by providing comprehensive protection for both personal and commercial vehicles.
How AI can transform insolvency processes for firms in the digital age
AI can streamline processes through workflow automation, ensuring that notices are automatically generated, reviewed, scheduled for publication, and tracked in real time.
Falling prices: Mbadi's math doesn't add up
In recent weeks, the National Treasury has been on a public relations overdrive to convince Kenyans that they are better off now than they were a year ago. 
How Trump's tariff wars might hurt Kenyan shilling and trade
A negative change in diaspora remittances could hurt the shilling whose stability to a bigger extent depends on how much Kenyans send back home.
.
RECOMMENDED NEWS