President-elect William Ruto has cautioned cartels against unfair taxation on miraa.
Speaking during an interdenominational church service at Maua Stadium, Meru county, Ruto said he has a meeting with Somalia President Hassan Sheikh to enhance the miraa trade.
“I have a meeting this week with Somalia President to fast track on Miraa markets. Miraa farmers should never be worried, I will deal with all brokers and cartels,” Ruto said.
For decades, Meru has been the veteran of miraa farming producing hundreds of tonnes every day, as the county’s economy grows and the farmers prosper.
However, miraa farmers have claimed that the lifting of a ban on exports to Somalia has increased cartels who are benefiting from a levy charged at the airport.
The traders claim that they were first made to accept the commission under duress to unlock the lucrative market that had been suspended since the outbreak of the Covid-19 pandemic in March of 2020.
The faceless cartel has been benefiting from the commission and has also set a maximum daily export limit of 19 tonnes meaning they could be collecting up to Sh8.5 million daily from the value chain.
The traders claim the commission has pushed the price of Kenyan khat (miraa) to an average landing cost of $23 a kilo giving it little chance against Ethiopian khat (Herera) which is currently available at $18 a kilo at the Somalia market.
On July 15, Somalia lifted the ban on the stimulant imposed in March 2020, a move that was celebrated by thousands of farmers who had been losing at least Sh16 million daily.
But farmers said there were still gridlocks in the sector because of bureaucracy that has impeded recovery, demanding the “illegal” fees be scrapped.
Farmers are charged Sh313 ($2.6) per kilo of the stimulant exported to Somalia, thus increasing the cost of the product in the market.