IKHALIIL
WW3 ENJOYER
Kenyan khat farmers halt exports to Somalia, demand higher prices
Mogadishu (HOL) — Kenyan khat farmers have suspended exports to Somalia, escalating a pricing dispute that has left Mogadishu's bustling khat markets shuttered for nearly a week. The farmers, frustrated with what they describe as exploitative pricing, demand that exporters pay an additional 300...
Thursday February 13, 2025
Mogadishu (HOL) — Kenyan khat farmers have suspended exports to Somalia, escalating a pricing dispute that has left Mogadishu's bustling khat markets shuttered for nearly a week. The farmers, frustrated with what they describe as exploitative pricing, demand that exporters pay an additional 300 Kenyan shillings (Ksh) per kilogram and enforce a minimum payment of Ksh 200,000 per bag for the premium "Grid" variety of khat.
The boycott threatens to disrupt the khat supply chain, which serves Somalia's insatiable appetite for the stimulant. Despite khat selling for up to Ksh 5,700 per kilogram in Mogadishu, Kenyan farmers argue they receive Ksh 300—an imbalance they say enriches intermediaries and transporters at their expense.
"We cannot sustain farming under these conditions when everyone in the supply chain profits except us," said Karuiru, chairman of the Kenyan Khat Farmers Association. He stressed that the cost of transporting khat to Mogadishu surpasses Ksh 3,000 per kilogram, yet farmers struggle with razor-thin margins. "All we're asking for is an additional Ksh 1,000 per kilogram to secure a fair deal."
The standoff's impact is already felt in Somalia, where traders accuse the government of maintaining policies that favour select importers while leaving local sellers to grapple with soaring costs. In mid-January, Somali female traders staged protests in Mogadishu against high taxation on Kenyan khat, claiming it was eroding their profits.
Kenya's Agriculture and Food Authority (AFA) has acknowledged the farmers' grievances. The agency's Khat Pricing Committee has met with industry stakeholders and is weighing a revised pricing framework. Committee chairman James Mithika confirmed that discussions include the introduction of a guaranteed minimum price of Ksh 700 per kilogram in the dry season and Ksh 500 per kilogram in the rainy season.
Adding another layer to the controversy, Kenyan farmers point to an illegal levy of USD 4.5 per kilogram allegedly imposed by a "cartel" at Jomo Kenyatta International Airport (JKIA). They claim this hidden cost is undermining farm-gate prices while inflating Mogadishu's retail rates.
The farmers have vowed to continue their protest, even as negotiations unfold, signalling further supply chain disruptions unless a resolution is reached.
