Friday January 10, 2025
NAIROBI, Kenya (HOL) — Kenyan miraa (khat) farmers are reeling under the weight of "illegal" levies imposed on their exports to Somalia, with a powerful cartel allegedly pocketing more than Sh10 million daily.
These unauthorized charges of Sh581.89 ($4.50) per kilogram are levied on the current daily export cap of 20 tonnes, exploiting a trade agreement intended to revive the miraa industry.
According to farmers, the cartel's operations began in July 2022, following an agreement between former Kenyan President Uhuru Kenyatta and Somali President Hassan Sheikh Mohamud that ended a two-year export ban. While the deal allowed limited shipments of miraa to resume, farmers were burdened by unrecorded fees, reportedly sanctioned by high-ranking officials in both governments.
The illegal levies have deepened financial woes for miraa farmers, who already face reduced export volumes—down from over 50 tonnes daily before the pandemic. Industry insiders, including a former Ministry of Agriculture official, claim the scheme benefits a select group of influential individuals. "These people rake in millions every day, while farmers are left struggling," the official said, requesting anonymity.
In 2022, the Nyambene Miraa Trade Association (Nyamita) sounded the alarm about these levies, describing how exporters were coerced into paying a "commission" at Jomo Kenyatta International Airport (JKIA). Airlines were allegedly directed to assist in collecting the fees. The Agriculture and Food Authority (AFA) implemented new regulations that same year but have done little to curb the exploitation.
Miraa exports to Somalia surged from 3.13 million kilograms in 2022 to 6.26 million kilograms in 2023, doubling the cartel's profits. By current estimates, the group amassed Sh1.8 billion in 2022 and Sh3.6 billion in 2023. Yet, despite the staggering scale of this operation, government interventions have been largely ineffective.
Meru Senator Kathuri Murungi has acknowledged the Ministry of Trade's awareness of the levy but criticized its failure to act decisively. "Even efforts by the Kenyan Ambassador to Somalia have failed to dismantle this deeply entrenched cartel," he lamented.
President's William Ruto's pledged during his 2022 campaign to eliminate the cartel. Two years later, the illegal levies persist, inflating miraa prices and reducing farmers' earnings. In Mogadishu, Kenyan miraa fetches as much as Sh5,000 per kilogram, yet farmers see only a fraction of these profits, their returns eroded by export costs.
Nyamita spokesperson Kimathi Munjuri highlights how the so-called "commission" has distorted the miraa market in Somalia, making the commodity less affordable. Meanwhile, some suggest the levies serve as an informal mechanism to regulate khat consumption in Somalia, though this claim remains unverified.