Kenyan miraa farmers have suspended exports to Somalia following the government’s announcement of new prices for the crop.
Reports indicate that the Khat market in Somalia is already experiencing a slowdown since the farmers are now demanding $3 per kilogram and at least $1550 per sack of miraa.
Farmers in Mogadishu argue that a kilogram of Khat goes even at $50 but despite these fortunes, exporters insist on giving them $3 per kilogram.
The farmers described the move as exploitative, demeaning and leading to acute imbalance.
They mentioned that intermediaries are the greatest beneficiaries of the imbalance which threatens the stability of the market.
Kenyan Khat Farmers Association chairman, Rasta Karuiru, asked the government to address the imbalances to ensure stability.
“We cannot sustain farming under these conditions when everyone in the supply chain profits except us,” Karuiru said.
He explained that the farmers just need an additional $8 per kilogramme to ensure that no one is disadvantaged.
“He stressed that the cost of transporting khat to Mogadishu surpasses Ksh 3,000 ($27) per kilogram, yet farmers struggle with razor-thin margins. All we’re asking for is an additional Ksh1,000 ($8) per kilogram to secure a fair deal,” he added.
The standoff is already affecting Somalia, where traders accuse the government of favouring select importers while local sellers struggle with rising costs.
In mid-January, Somali female traders protested in Mogadishu against high taxes on Kenyan miraa, saying it was cutting into their profits.
Also Read: Government Announces New Miraa Prices After Protests
New Miraa Prices
Agriculture Cabinet Secretary (CS) Mutahi Kagwe announced new miraa prices on Saturday, February 15, 2025.
In a statement, Kagwe said the prices followed a review by the Miraa Pricing Formula Committee, which considered production data, costs, supply and demand.
Grade 1, previously priced at Ksh700 per kilogramme, now costs Ksh1,300, while Grade 2’s price increased from Ksh350 to Ksh700, and Alele went from Ksh500 to Ksh1,000.
“These prices take effect immediately,” Kagwe said.
Kagwe stated that the government will continue to address the market access challenges to expand on export opportunities in our current and new markets.
Also Read: Muguka Ban: Blow to Farmers as UDA MP Starts Process of Reclassifying Miraa
Exports to Somalia
The Agriculture and Food Authority (AFA) reported that Kenya exported 6.2 million kilograms of miraa to Somalia in 2023, doubling the 3.1 million kilograms sent in 2022 after exports resumed.
However, exports declined for five consecutive months in the second half of 2023 due to stiff competition from Ethiopian growers.
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