Government Announces New Wheat Prices for 2025/26 Season

A significant shift in Kenya’s agricultural landscape took shape on Saturday, July 26, 2025, as the government unveiled new wheat prices for the 2025/26 season, aiming to balance farmer livelihoods with market dynamics. The announcement, made public at a stakeholder meeting in Nairobi at 10:00 AM East Africa Time, set the minimum price for a 90kg bag of Grade 1 wheat at Sh4,750, Grade 2 at Sh4,650, while Grade 3 wheat will be traded under a willing buyer–willing seller arrangement. The decision, reached after weeks of consultations with farmers, millers, and agricultural experts, reflects an effort to address production costs and encourage domestic output. “These prices are designed to support our farmers while keeping the market stable,” an official from the agriculture ministry said, addressing a room filled with attentive listeners.

The new pricing structure marks a departure from the previous season, where Grade 1 wheat fetched Sh5,300 per 90kg bag and Grade 2 Sh5,200, with Grade 3 also following a willing buyer–willing seller model. The reduction for Grades 1 and 2 has sparked mixed reactions, with some farmers expressing concern over diminished returns. In Narok, a key wheat-growing region, a farmer harvesting his crop remarked, “Last year was better; Sh4,750 won’t cover my costs with the drought we faced.” The grades are determined by bushel weight—Grade 1 for wheat with a weight of 78 and above, Grade 2 for 75 to 77.9, and Grade 3 for below 75—reflecting quality variations that influence market value. The flexible pricing for Grade 3 aims to accommodate lower-quality yields, though it leaves outcomes to negotiation.

The decision follows a series of meetings, including a major stakeholder workshop in June and a follow-up session on July 3, where production costs and market trends were analyzed. Officials highlighted that the new prices are based on a structured formula, factoring in input costs like fertilizer and labor, which have risen due to inflation. A miller in Eldoret, overseeing a storage facility, noted, “The lower prices might help us compete with imports, but we need consistency.” The government’s goal is to boost local production, reducing reliance on imports that constitute over 70% of Kenya’s wheat consumption, primarily from Russia and Ukraine. A trader in Nakuru, sorting grains at a market, added, “If farmers produce more, we won’t depend so much on foreign supplies.”

Public response has varied across the country’s wheat belts. In Uasin Gishu, where vast fields stretch toward the horizon, a farmer adjusting his tractor said, “Sh4,750 is tight, but I’ll manage if the rains hold.” In contrast, a mother in Kisumu, buying flour for her family, expressed concern. “If prices drop for farmers, will bread get cheaper for us?” she asked, carrying her purchases home. The willing buyer–willing seller approach for Grade 3 wheat introduces uncertainty, with some farmers fearing they might receive even less than the set minimums for higher grades. A youth leader in Laikipia, organizing a community discussion, reflected, “We need clear guidelines so no one is cheated.”

The agricultural sector, a backbone of Kenya’s economy, relies heavily on wheat as the second most consumed cereal after maize. The new prices are part of the Wheat Purchase Programme, designed to incentivize farmers while ensuring millers can access local grain. A handling fee of Sh220 per 90kg bag, split equally between farmers and millers, covers weighing, offloading, and testing, adding a layer of cost that farmers must navigate. In Meru, a woman selling vegetables near a grain depot said, “The fee cuts into our profit, but at least there’s a market.” The programme also ties millers’ import quotas under the Duty Remission Scheme to their purchase of local wheat, a move intended to strengthen domestic supply chains.

Farmers in regions like Narok and Nakuru, where wheat thrives on volcanic soils, have voiced concerns about the reduced prices in the context of rising production costs. Fertilizer prices have climbed to Sh6,000 per 50kg bag, up from Sh4,500 last year, while fuel for machinery has also surged. A mechanic in Timau, repairing a harvester, noted, “Farmers are struggling; these prices might push some out.” Yet, officials argue the adjustment reflects a realistic assessment of market conditions, with imports exerting downward pressure on local prices. A shopkeeper in Nyahururu, stocking flour, added, “If imports stay cheap, local wheat has to compete.”

The willing buyer–willing seller model for Grade 3 wheat has drawn particular attention, with stakeholders debating its implications. In some areas, farmers reported selling Grade 3 at Sh4,000 per bag last season, well below the minimums for higher grades. A farmer in Trans Nzoia, loading sacks onto a truck, said, “We’ll have to negotiate hard, or we’ll lose out.” The flexibility aims to accommodate varying yields, especially after erratic weather patterns affected quality, but it risks leaving smaller farmers vulnerable. A community elder in Kitale, leading a meeting, urged, “The government should monitor these deals to protect us.”

Communities across Kenya’s wheat-growing counties—Narok, Nakuru, Uasin Gishu, Laikipia, and Meru—have engaged in lively discussions about the new prices. In rural Bomet, a herder tending cattle paused to hear a radio update, saying, “If it helps us grow more, I’m for it.” In urban Mombasa, a baker kneading dough expressed a different view. “Lower prices might not change what I pay for flour,” he said, shaping loaves for the oven. The government’s focus on fair compensation seeks to encourage planting for the next season, with officials promising further consultations if challenges arise. A student in Eldoret, scrolling through news on his phone, noted, “More production could mean jobs here.”

The economic context, with inflation hovering around 5.5% and debt servicing straining budgets, underpins the pricing decision. The agriculture ministry aims to stabilize the sector while avoiding subsidies that could deepen fiscal deficits. A driver in Garissa, fueling his matatu, remarked, “They’re trying to balance things, but farmers need support too.” The new prices will apply at traditional buying centers like Narok, Nakuru, and Timau, with millers required to adhere to the minimums for Grades 1 and 2. A woman in Kakamega, waiting at a bus stage, added, “We’ll see if this helps the market or just the big players.”

As the morning progressed, the story spread to remote areas via word of mouth and radio. In Tharaka Nithi, a farmer irrigating crops said, “This could work if we get good yields.” In Nairobi’s Gikomba market, a vendor packing grains noted, “Farmers might complain, but consumers might benefit.” The reduced prices have prompted calls for improved farming techniques, with extension officers planning workshops to boost productivity. A mother in Nyeri, feeding her children, expressed hope. “If they grow more wheat, maybe prices will stabilize for us.” The announcement marks a pivotal moment for Kenya’s wheat sector.

The afternoon saw farmers and millers adjusting to the new reality. In Nakuru, a group gathered at a buying center, debating the implications. “We’ll plant less if this continues,” one farmer said, stacking bags. In contrast, a miller in Eldoret welcomed the change. “Lower costs could help us keep bread affordable,” he noted, overseeing a delivery. The government’s commitment to monitoring the market includes plans for a mid-season review, with stakeholders invited to provide feedback. A youth leader in Meru, organizing a forum, reflected, “This is a start; we need to keep pushing for fairness.”

Legal experts suggest the pricing structure could influence future agricultural policies, balancing farmer income with consumer needs. A community organizer in Laikipia, planning a rally, remarked, “They must ensure small farmers aren’t left behind.” The willingness to adjust based on feedback has fostered cautious optimism, with residents awaiting the season’s outcomes. A vendor in Timau, closing his stall, added, “Let’s see how it plays out in the fields.” The new wheat prices set the stage for a season of adaptation and dialogue, with Kenya’s agricultural future in focus.