Kenya Hikes Wheat Prices to KES 5,100 per Bag Amid Production Shortfalls

The Kenyan government has announced a price hike for locally grown wheat to support farmers and boost production. The producer price of wheat will now be KES 5,100 per 90kg bag, up from last year's KES 4,750.

This decision aims to incentivize domestic production, reduce the country's reliance on international grain imports, and stabilize the national flour supply matrix amid global market volatility. The Ministry of Agriculture attributes a significant contraction in total wheat output this season to adverse weather conditions and a shift by farmers toward competing cash crops such as barley.

The price hike is expected to benefit over 2,000 large- and medium-scale wheat farmers concentrated in Kenya's traditional breadbasket counties. Commercial millers warn that artificially elevated raw material costs may eventually be absorbed by the market, potentially resulting in marginal retail price increases for baked products on supermarket shelves across the country.