Government Statement on Wheat Prices and Import Quotas in Kenya for year 2025/2026
The Agriculture and Food Authority (AFA) statement on Wheat Prices and Import Quotas in Kenya for year 2025/2026
The Agriculture and Food Authority (AFA) convened a four-day stakeholder workshop from 24th to 27th June 2025 to review the implementation of the Wheat Purchase Programme (WPP), as part of the monitoring and evaluation efforts.
Key outcomes included the official closure of the 2024/2025 season, an analysis of production costs and the determination of minimum wheat prices and aggregator margins for the 2025/2026 season. A follow-up price negotiation meeting was held on 3rd July 2025. The following resolutions were agreed upon to enhance the effectiveness of the WPP:
a) Allocation of Wheat Import Quotas
The Authority, in collaboration with the National Treasury, evaluated applications from millers seeking to import wheat under the Duty Remission Scheme (DRS) for the upcoming season. Approvals were granted based on:
i. Registration with AFA as wheat importers; ii. Performance in previous local wheat purchase commitments; iii. Performance in previous import quota utilization; and iv. Installed milling capacity.
Note: All participating millers will be required to purchase locally produced wheat in quantities proportional to their allocated import quotas.
b) Wheat Grading System for 2025/2026 Season
The grading criteria applied in the 2024/2025 season will remain in effect for the 2025/2026 season as follows:
| Grade | Bushel Weight (lbs) |
|---|---|
| 1 | 78 and above |
| 2 | 75- 77.9 |
| 3 | Below 75 |
c) Wheat Aggregation Process
Aggregation will be done by aggregators who will be vetted afresh and registered by AFA as marketing agents. A handling fee of Kshs. 220 per 90 Kg bag to cater for weighing, offloading and testing will be paid to aggregators, shared equally between the farmer and the miller.
d) Recommended Minimum Wheat Prices for 2025/2026 Season
Minimum prices have been determined based on a study of the average cost of production, an established pricing formula and negotiations. The goal is to offer farmers fair compensation and encourage increased production. After stakeholder consultations, the following minimum prices applicable at traditional wheat buying centers (Narok, Nakuru, Eldoret, Nyahururu, and Timau) are recommended for the 2025/2026 season:
| Bushel Weight | Minimum Price Per 90 Kgs bag (Kshs.) |
|---|---|
| 78 and above (Grade 1) | 4,750. |
| 75- 77.9 (Grade 2) | 4,650. |
| Below 75 (Grade 3) | Willing buyer willing seller |
Way forward
i. All commitments agreed upon during stakeholder negotiations are final and binding.
ii. Any future amendments aimed at supporting the Wheat Purchase Programme will be communicated in due course following stakeholder consensus.
The Wheat Purchase Programme (WPP) is a Duty Remission Scheme established by the National Treasury after consultations with the Cereal Millers Association (CMA) and the Cereal Growers Association (CGA). The programme’s objective is to encourage local wheat production and reduce overreliance on imports.
Under this scheme, millers gazetted by the East African Community (EAC) Customs Union benefit from a reduced import duty rate of 10%, down from the standard 35% applicable to sensitive products under the EAC Common External Tariff (CET). This preferential duty rate is conditional upon the millers purchasing locally grown wheat to support domestic production at a negotiated price.