Authorities announce revised wheat costs
New Minimum Prices for Wheat Announced for 2025/26 Season
The Agriculture and Food Authority (AFA) has set new minimum prices for wheat in Kenya for the 2025/26 season, aiming to offer farmers fair compensation and encourage increased production.
The new minimum prices are as follows:
- Grade 1 wheat (bushel weight 78 and above): Sh4,750 per 90kg bag
- Grade 2 wheat (bushel weight 75–77.9): Sh4,650 per 90kg bag
- Grade 3 wheat (bushel weight below 75): Traded under a willing buyer-willing seller arrangement without a fixed minimum price.
These prices were determined after a stakeholder workshop in June 2025 and a follow-up negotiation meeting on July 3, 2025.
The factors influencing these price levels include the cost of production, a structured pricing formula, stakeholder negotiations, and a goal to reduce Kenya's dependency on wheat imports by supporting local farming viability.
A handling fee of Sh220 per 90kg bag will be charged for weighing, offloading, and testing, shared equally between the farmer and the miller. This fee is intended to ensure quality and fair processing across the value chain.
Moreover, millers who benefit from the Duty Remission Scheme for wheat imports are mandated to purchase local wheat proportional to their import quotas, based on past performance and milling capacity. This move is aimed at supporting the local market further.
The wheat grading system used in the 2024/25 season has been retained. The AFA did not mention any changes to the minimum price for Grade 1 wheat (Sh4,750) in the 2025/26 season.
The AFA did not state whether the willing buyer-willing seller arrangement for Grade 3 wheat will have any changes in the 2025/26 season. Additionally, the agency did not provide details about the impact of the Wheat Purchase Programme on the Duty Remission Scheme for wheat imports.
All resolutions made during the consultations are final, with any amendments to be communicated after further stakeholder engagement. The Director General of the AFA, Bruno Linyiru, made these statements.
In the context of the new minimum prices for wheat, the Agriculture and Food Authority (AFA) aims to create a balanced environment where farming becomes more profitable and Kenya reduces its dependency on wheat imports. This aligns with the broader goals of politics and industry, as the changes also influence the business sector, particularly finance and business, considering these price adjustments could impact export and import operations, investments in the farming industry, and overall economic growth. Moreover, the equal handling fee for farmers and millers is a significant step in the finance aspect, ensuring quality and fairness within the value chain, hence attracting more stakeholders to participate in local farming initiatives.
