Kenya's Khat Farmers Face Ksh10m Monthly Loss Amid Mombasa Ban

27 May 2024
Business Day Africa (Nairobi)

Kenya's Muguka (khat) farmers face losses of at least Ksh 10 million per month following Mombasa County's ban on the sale of the stimulant in the coastal city.

As the second-largest buyer of muguka in Kenya after Nairobi, the ban is expected to have severe economic repercussions for farmers and local businesses alike.

Mombasa, according to miraa traders, purchases at least six tonnes of muguka daily. Kimathi Munjuri, Chairman of the Nyambene Miraa Traders Association (Nyamita), criticised the ban, suggesting that muguka is being unfairly targeted amid broader drug concerns in the county.

"We all know that the problem isn't muguka per se but the use of heroin, cocaine, and hashish, which are being veiled by muguka," Munjuri stated.

He emphasised the economic impact of the ban, noting that despite the relatively low value of muguka, it provides significant employment opportunities, allowing anyone with as little as Ksh200 to start a retail business.

Miraa and muguka are distinct stimulants, with miraa having a juicy, succulent stem that is typically chewed, while muguka is a short shrub with edible leaves. The Mombasa ban coincides with a similar restriction in Kilifi County, exacerbating an already challenging situation for farmers.

Miraa and muguka are crucial income sources for farmers in the Embu and Meru regions. Any trade barriers significantly impact the livelihoods of numerous households dependent on the stimulant.

The miraa sector in Kenya has faced turbulent times, particularly with high levies in the Somali market. Kenyan miraa incurs a hefty levy of $4.5 per kilogramme, making it financially unviable for buyers in Mogadishu, where it must sell for upwards of $30 per bundle.

This high cost has made Ethiopian miraa more attractive to buyers, overshadowing the Kenyan product.

Miraa plays an important role in Kenya's foreign exchange earnings, contributing over Ksh 50 billion since the resumption of exports to Somalia in July 2022.

Despite efforts by Meru's elected leaders to broker a resolution, no tangible results have been achieved.

Read the original article on Business Day Africa.

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