Kenyan NCPB to purchase 321,000 bags of wheat from farmers to alleviate market crisis
KENYA – Kenya’s National Cereals and Produce Board (NCPB) will commence the procurement of 321,000 bags of wheat currently held by farmers in a bid to address the ongoing wheat market crisis.
Mutahi Kagwe, the Agriculture and Livestock Cabinet Secretary, issued the directive on March 3, urging farmers and aggregators to deliver their stock to NCPB warehouses nationwide starting Tuesday, March 4.
The announcement followed a high-level meeting at Kilimo House, attended by key players in Kenya’s agriculture sector. Participants included Agriculture Principal Secretary Dr. Paul Ronoh, NCPB Managing Director Samuel Karogo, Agriculture and Food Authority Director General Dr. Bruno Linyiru, and Agriculture Secretary Collins Marangu.
The meeting also brought together representatives from the Cereal Millers Association (CMA), led by CEO Paloma Fernandez and Vice Chair Beju Shah, as well as the Cereal Growers Association (CGA), represented by CEO Anthony Kioko.
The directive stems from the earlier crisis, where Cereal millers in Kenya were alleged sidelining local wheat producers in favor of imports, following accusations that farmers in Narok County are sitting on unsold wheat worth Sh50 billion, approximately US$386 million.
The Cereal Millers Association (CMA), however, refuted these claims, stating that its members have consistently purchased all available local wheat over the past two decades.
According to Paloma Fernandes, CMA CEO, Kenya produces only a fraction of its national wheat demand, with local farmers supplying approximately seven per cent of the 24 million bags consumed annually.
“The total national value of wheat produced across all these regions, based on the 1.7 million bags expected this season at KES 5,300 (US$41) per bag, stands at approximately KES9 billion, not KES 50 billion as alleged,” Fernandes said.
Kagwe assured farmers that payments would be made within 30 days of delivery, a move aimed at providing timely financial relief to wheat growers. Additionally, in a Memorandum of Understanding (MoU) signed between the NCPB and millers, the board will release the wheat to millers, who are expected to make payments within 14 to 21 days.
“In a memorandum of understanding to be signed between the NCPB and the Millers, the wheat from the NCPB will be collected by millers and payments done within 14 to 21 days,” read the statement.
The farmers claim that since they started their harvest in August last year, they have not succeeded in selling their wheat.
With the current agreement, the government expects to streamline the wheat supply chain, ensuring efficiency in stock movement and reducing price volatility.
CS Kagwe issued a stern warning against any attempts to introduce imported wheat into the NCPB system, stating that such actions would be considered economic sabotage. He emphasized that individuals found violating this directive would face legal consequences.
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