Kenya (KAAB TV) – Kenyan khat farmers have stopped exporting to Somalia, raising the issue of inflation that caused the khat markets in Mogadishu to be closed for almost a week. Frustrated by what they described as price cuts, the farmers demanded that exporters pay an additional 300 Kenyan shillings (Ksh) per kilo and enforce the minimum payment of Ksh 200,000 per bag for the various “Grid” prices of khat.
The boycott threatens to disrupt the khat supply chain, which serves Somalia’s voracious appetite for the drug. Although khat is sold for up to Ksh 5,700 a kilogram in Mogadishu, Kenyan farmers argue that they charge Ksh 300 – an imbalance they say strengthens middlemen and transporters and pays their costs.
“We cannot continue farming under such conditions when everyone in the supply chain benefits except us,” said Karuiru, chairman of the Kenya Cassava Farmers Association. He emphasized that the price of khat delivered to Mogadishu is over 3,000 Ksh per kilo, yet the farmers are struggling with excess. “All we are asking for is Ksh 1,000 more per kilogram so we can get a fair deal.”
The Kenya Food and Agriculture Organization (AFA) acknowledged the farmers’ complaint. The agency’s Cost Assessment Committee has met with industry stakeholders and is weighing a revised cost structure. The chairman of the committee James Mithika confirmed that the negotiations include introducing a minimum price of Ksh 700 per kilogram in the summer season and Ksh 500 per kilogram in the rainy season.
Adding another layer to the controversy, Kenyan farmers pointed to an illegal tax of USD 4.5 per kilogram allegedly imposed by a “cartel” at the Jomo Kenyatta International Airport (JKIA). They claim that this hidden fee is driving down farm gate prices while increasing retail prices in Mogadishu.
Farmers have vowed to continue their protests, even as negotiations continue, signaling further disruptions to the supply chain if no solution is reached.