JKIA
- 155 views
Kenyan miraa (khat) farmers are facing significant challenges due to illegal levies imposed on their exports to Somalia.
The situation is reportedly orchestrated by a covert cartel allegedly backed by influential government officials. Exporters are being charged unauthorized fees of Sh581.89 ($4.50) per kilogram, leading to substantial daily profits for this cartel, which total more than Sh10 million, based on the current daily export volume of 20 tonnes. This illicit operation emerged in July 2022, after an agreement between former President Uhuru Kenyatta and Somali President Hassan Mohamud that lifted a two-year ban on Miraa exports.
The agreement stipulated a reduced daily export cap of 20 tonnes—down from over 50 tonnes pre-pandemic—but farmers are still besieged by additional, unrecorded charges. These levies, although not formalized in any trade agreements, were reportedly authorized by high-ranking officials from both governments. An anonymous former Ministry of Agriculture official reveals that powerful individuals involved in this arrangement are reaping millions of shillings daily while farmers bear the burden.
In 2022, the Nyambene Miraa Trade Association (Nyamita) raised concerns about the enforcement of this illegal levy, indicating that miraa could not be exported from Jomo Kenyatta International Airport (JKIA) without compliance with the 'commission.' Airlines were also reportedly instructed to facilitate this collection. The resurgence of miraa exports coincided with the implementation of government regulation through the Agriculture and Food Authority (AFA).
Miraa exports from Kenya to Somalia rose from 3.13 million kilograms in 2022 to 6.26 million kilograms in 2023, resulting in the cartel allegedly accruing at least Sh1.8 billion in 2022 and Sh3.6 billion in 2023 at the current exchange rate. Meru Senator Kathuri Murungi has acknowledged the Ministry of Trade's recognition of the levy but highlights its inability to take substantive action. He expresses frustration over the cartel’s entrenchment, noting that attempts to resolve the issue, even by the Kenyan Ambassador in Somalia, have been unsuccessful.
President William Ruto had pledged in 2022 to dismantle the cartel; however, despite the passage of two years, these illegal fees remain, adversely affecting Miraa trade due to inflated prices and added levies. While some perceive the daily quota and commissions as an effort by the Somali government to regulate khat consumption, others suspect that traders are engineering artificial demand to inflate prices.
In Mogadishu, Kenyan khat is reportedly sold for as much as Sh5,000 per kilogram, whereas farmers receive minimal returns, significantly impacted by these export costs. Nyamita spokesperson Kimathi Munjuri indicates that the 'commission' is closely linked to the export market dynamics in Mogadishu, suggesting its purpose is to limit the affordability of miraa in Somalia.
Additionally, Meru County Agriculture Chief Officer James Mutia calls upon the Miraa-Muguka Pricing Committee to address these inequities and propose fair pricing mechanisms that would ultimately benefit farmers. Meanwhile, AFA Director-General Bruno Linyiru indicates unawareness of the airport 'commission.'