Mutahi Kagwe Unveils Major Cash Boost for Wheat Farmers Ahead of 2026 Harvest

Share With Friends

The government has increased the producer price of locally produced wheat to Sh5,100 per 90-kilogram bag for the 2026 season, marking a significant boost for farmers as part of efforts to strengthen local food production and reduce the country’s dependence on imported grain.

Agriculture Cabinet Secretary Mutahi Kagwe announced the revised price, saying it follows extensive consultations coordinated by the Agriculture and Food Authority (AFA).

The discussions brought together key stakeholders, including the Cereal Growers Association (CGA), wheat farmers, and cereal millers, to agree on a fair pricing model that benefits producers while maintaining stability in the milling industry.

The new price represents an increase of Sh350 from last year’s producer price of Sh4,750 per 90-kilogram bag, offering much-needed relief to farmers who have been grappling with rising production costs.

Kagwe said the government remains committed to creating a favorable environment for local farmers by ensuring they receive competitive returns for their produce. He noted that the revised pricing reflects the realities of increased input costs, including fertilizer, fuel, labor and farm machinery.

According to the Cabinet Secretary, improving farm gate prices is one of the measures aimed at encouraging more farmers to expand wheat production and reduce Kenya’s heavy reliance on imports, which account for a significant portion of the country’s annual wheat consumption.

The consultations leading to the price review sought to strike a balance between the interests of farmers and millers while ensuring consumers continue accessing affordable wheat products.

Also Read

Kagwe emphasized that collaboration among stakeholders is essential in building a sustainable and competitive wheat value chain.

The Agriculture and Food Authority welcomed the agreement, saying it demonstrates the importance of dialogue in resolving sector challenges. Officials expressed optimism that the higher producer price will motivate farmers to increase acreage under wheat cultivation during the current season.

Farmer organizations have also welcomed the announcement, describing it as a positive step toward improving profitability in wheat farming.

Many growers had previously raised concerns that stagnant producer prices were making wheat cultivation less attractive despite increasing production expenses.

Industry players believe the revised pricing could help revive local wheat farming, enhance food security, and create more employment opportunities within the agricultural value chain.

The government has reiterated its commitment to supporting farmers through policy reforms, improved access to quality inputs, mechanization programs, and extension services aimed at boosting productivity.

As the 2026 harvesting season approaches, the higher producer price is expected to inject renewed confidence among wheat farmers, with many hoping the adjustment will translate into better incomes and encourage greater investment in local grain production.