Bread, Chapati, and Flour Prices Set to Spike as Wheat Import Delays Continue

NAIROBI, KENYA – Consumers should brace for higher prices on essential wheat-based foods, including bread, chapatis, and wheat flour, following a stark warning from the Cereal Millers Association (CMA). The impending price hike is being driven by continued government delays in the release of C60 import approvals, a critical document that allows approved millers to bring in specified quantities of wheat under the Duty Remission Scheme for processing.

Kenya’s wheat demand relies heavily on international markets, with approximately 95% of the country's requirements sourced globally and only about 5% produced locally.

The Local Wheat Purchase Commitment

Under the current national framework, millers are required to purchase available locally produced wheat before they can receive their C60 import permits. In full compliance with this, CMA members have committed to purchasing local wheat at an increased price of KSh 5,100 per 90kg bag, up from KSh 4,750. This arrangement ensures Kenyan farmers have a guaranteed market for their produce before domestic supplies are supplemented through imports.

Additionally, the milling industry supports local wheat production by contributing close to KSh 2 billion annually through the AFA levy.

Despite fulfilling the requirements of the Local Wheat Purchase Programme, CMA Chief Executive Officer Paloma Fernandes revealed that outstanding C60 import approvals have still not been released. This administrative delay is leaving imported wheat consignments stranded and unable to clear normally.

Mounting Costs and Global Pressures

Fernandes emphasized the severe financial toll of these domestic bottlenecks.

The domestic delays could not come at a worse time, as the international wheat market is facing intense pressure. According to the FAO, global wheat prices rose 5.8% in July and were 9.9% higher than a year earlier. This global spike is largely driven by disruptions to Black Sea exports and damage to vital export infrastructure.

Recent attacks on ports, vessels, and infrastructure in both Russia and Ukraine have disrupted grain movements, increased shipping and insurance risks, and forced exporters to seek alternative, more expensive routes.

A Call to Action for Government Agencies

With Kenya being highly vulnerable to global shipping disruptions due to its 95% reliance on imported wheat, the CMA had previously warned the government about the risks of delayed contracted cargoes and higher landed costs.

The CMA is urgently calling on the Agriculture and Food Authority (AFA) and relevant government agencies to immediately release all outstanding C60 approvals. They are also urging the government to prioritize wheat consignments currently stuck at the port and ensure that local price negotiations do not disrupt future import planning and vessel clearance.

The association reiterated that supporting local wheat farmers and ensuring adequate imports are not competing objectives; Kenya requires both. Their main priority remains protecting farmers, maintaining an uninterrupted wheat supply, and ensuring Kenyan families have access to affordable essential foods.