Wheat farmers will earn more from their produce this season after the government raised the producer price of a 90-kilogram bag to Sh5,100, giving growers a Sh350 increase as the country moves to strengthen local production and cut dependence on imported grain.
The new price, which applies to wheat produced during the 2026 season, has risen from Sh4,750 last year. The government says the higher return is intended to improve farmers' incomes while ensuring millers and consumers continue to access a steady and affordable supply of wheat.
The Ministry of Agriculture and Livestock Development said the new price was agreed through consultations led by the Agriculture and Food Authority (AFA), bringing together the Cereal Growers Association (CGA), wheat farmers and cereal millers.
The consultations were aimed at arriving at a price that gives farmers better returns without putting pressure on millers or pushing up the cost of wheat for consumers.
The new producer price will be paid at designated aggregation centres, where the government has already started the annual wheat mop-up exercise before any imports are considered.
The ministry said the arrangement gives priority to locally produced wheat and protects farmers by ensuring locally harvested grain is bought before imported wheat is allowed into the market.
"The Government has approved a producer price of Sh 5,100 per 90-kilogram bag for locally produced wheat for the 2026 season, up from Sh 4,750 last year, in a move aimed at improving farmers' incomes while ensuring a stable and affordable supply of wheat to millers and consumers." The ministry said in a statemement.
About one million 90-kilogram bags are expected to be harvested this season, compared with around 1.7 million bags produced last year.
The ministry attributed the projected decline to unfavourable weather conditions and a shift by farmers from wheat to barley after barley offered better returns last season.
Barley fetched about Sh5,300 per bag last season, prompting many farmers to switch from wheat. However, its price has since dropped to between Sh4,200 and Sh4,500 per bag, making wheat farming more attractive to growers.
More than 2,000 farmers in Narok, Nakuru, Meru, Laikipia, Nyandarua and Uasin Gishu are expected to benefit from the improved wheat price.
The ministry said the agreed price takes into account the interests of farmers, millers and consumers, with the government seeking to improve returns to producers without making wheat products unaffordable.
"The Government considers the agreement a win-win outcome for both farmers and millers, as it provides better returns to producers while taking into account the need to maintain affordable consumer prices. The consultative approach adopted by AFA and industry stakeholders demonstrates that collaboration across the wheat value chain can protect local production, support the milling industry and safeguard national food security."
The government is also implementing several measures aimed at reviving the wheat sector, increasing yields and lowering the cost of production.
The interventions include expanding fertiliser subsidies, speeding up the development and distribution of climate-resilient wheat varieties through KALRO and private seed companies, and promoting the use of machinery in farming.
The ministry is also working to strengthen measures against destructive quelea birds, support commercial land use and promote climate-smart farming practices.
Wheat production growth this season is now expected to stand at about five percent, lower than the earlier projection of 10 percent.
Despite the revised forecast, the ministry remains confident that the measures being implemented will help raise local wheat production in the coming years, improve food security and reduce the country's dependence on imported wheat.