CS Mutahi Kagwe Increases Miraa Prices
The Ministry, under Cabinet Secretary Mutahi Kagwe, adjusted the market rates upwards having collected views from farmers.
Viral Tea Ke Writer 
The Ministry of Agriculture and Livestock Development has announced an increase in the prices of khat products (miraa).
The Ministry in a statement explained that it, through the Agriculture and Food Authority (AFA), is mandated to regulate, develop, and promote the Scheduled Crops and in accordance with the provisions of the Crops Act 2013, the AFA Act 2013, the Crops (Miraa) Regulations 2023, and the Kenya Standard KNWA: 2940:2021 Miraa(Khat) Industry- Code.
The Ministry, under Cabinet Secretary Mutahi Kagwe, adjusted the market rates upwards having collected views from farmers.
"The Miraa Pricing Formula Committee was established pursuant to provisions of regulation 29 of the Crops (Miraa) Regulations, 2023 with an objective of providing advisory to the industry of the pricing of Kenyan miraa. In executing its duties, the committee reviews production data, cost, supply and demand among other parameters to advise the sub-sector," the statement by the Ministry read in part.
Agriculture Cabinet Secretary Mutahi Kagwe on Tuesday, January 14, 2025, during vetting by the National Assembly Committee on Appointments. /PARLIAMENT KENYA
"The Committee met on 13th February 2025 and after considering the submissions by the farmers and traders agreed on the following."
The AFA estimates that the miraa sector generates approximately Ksh13 billion in annual revenue, underscoring its significance to the national economy. Kenya primarily exports miraa to Somalia, Israel, and the Democratic Republic of Congo (DRC).
On June 28, 2023, the AFA introduced the Miraa Levy, a new tax which was to be implemented from Saturday, July 1, 2023.
AFA stated at the time that the levy was introduced under Regulation 31 of Crops (Miraa) 2023, which was published on Wednesday, April 5, thus providing the regulatory framework for the Miraa sub-sector in Kenya.
"Whereas the implementation of licensing procedures was rolled out immediately after the publication, the Implementation of the Miraa Levy was delayed as the development of enabling framework was underway. The e-platform has now been completed on the AFA's Integrated Management Information System.
"In this regard, the Authority hereby notifies the general public that the Miraa Levy provided for under Regulations 31 of Crops (Miraa) Regulations, 2023 shall take effect from 1st July 2023," read AFA's statement in part.
The Miraa sub-sector had improved drastically in the last 12 months in particular after the re-opening of the Somalia Market in July 2022, a move believed to have led to the introduction of the levy.
Back in May, miraa farmers and traders lamented over what they termed as high taxes imposed on the cash crop by most counties, urging governors to treat miraa just like any other cash crop, adding that the high levies made it hard for them to do business.
One vehicle carries miraa worth about Ksh2.5 million, while a lorry carries produce worth Ksh5 million. Optimally, up to 60 vehicles move the miraa on any given day, translating to about Ksh150 million daily in an industry worth up to Ksh40 billion every year.
Miraa is a highly perishable commodity and must reach consumers as fresh as possible. The stimulant, primarily produced in Meru, begins to lose its potency immediately after it is harvested and since it is transported as far as Somalia, time and speed are critical in this business.
Miraa drivers are thus known to ply major highways at breakneck speeds, motivated by the desire for money.
