[ShabelleMedia] A near 10-day ban on the importation of khat from Kenya to Somalia has raised concerns about the growing impact on trade relations and the wider economy. The ban has led to uncertainty, with no clear indication of when Kenyan khat will return to the Somali capital, Mogadishu.
New information from sources within the Somali government suggests that the ban could extend further, exacerbating tensions between the two neighboring countries. The sources, who spoke on condition of anonymity, linked the issue to the political dynamics surrounding trade policies related to khat.
In Nairobi, sources revealed that khat traders visited the Kenyan capital earlier this month to meet with senior government officials. The traders reportedly discussed the high prices charged for khat exports to Somalia, urging the Kenyan government to lower the cost for Kenyan farmers to remain competitive in the Somali market.
The traders expressed growing concerns over the rising prices in Somalia, which they argued were unsustainable for Kenyan farmers, who have struggled to see full profits due to the inflated costs. The business dispute appears to be compounded by political factors, particularly with the administration of Somali President Hassan Sheikh Mohamud, which may seek to address the tensions in a bid to improve trade relations between the two nations.
The ongoing ban also poses a significant economic challenge for Somalia, where khat is an essential commodity, particularly in Mogadishu, and widely consumed. The disruption to the supply of khat could further worsen Somalia’s already precarious economic situation, which has been exacerbated by inflation and limited resources.
khat is an essential commodity. Instead of food
Both governments are expected to engage in diplomatic efforts to resolve the issue. However,
a person who gets all wrapped up in himself makes a mighty small package…
the continuation of the ban threatens to impact not only the many Somalis who depend on the khat trade but also Somali traders involved in the importation and distribution of the commodity.
Shabelle Media Network has reported on the latest developments, noting that the dispute between Somalia and Kenya over khat is becoming a key issue in bilateral trade relations.
The Khat market in Somalia is experiencing a slowdown after farmers in Kenya suspended exports, following the decline in prices, with the group now demanding $3 per kilogram and at least $1550 per sack of the product which is predominantly grown in central parts of Kenya.
In Mogadishu, the farmers argue, a kilogram of Khat goes even at $50 but despite these fortunes, exporters insist on giving them $3 per kilogram a move they say is both exploitative and demeaning leading to the acute imbalance.
Intermediaries, they said, are the greatest beneficiaries of the imbalance which threatens the stability of the market. The Khat association wants the imbalances to be fixed as soon as possible for posterity.
"We cannot sustain farming under these conditions when everyone in the supply chain profits except us," said Karuiru, chairman of the Kenyan Khat Farmers Association.
"He stressed that the cost of transporting khat to Mogadishu surpasses Ksh 3,000 ($27) per kilogram, yet farmers struggle with razor-thin margins. "All we're asking for is an additional Ksh 1,000 ($8) per kilogram to secure a fair deal."
The standoff's impact is already felt in Somalia, where traders accuse the government of maintaining policies that favour select importers while leaving local sellers to grapple with soaring costs. In mid-January, Somali female traders staged protests in Mogadishu against high taxation on Kenyan khat, claiming it was eroding their profits.
Already, the Kenya Agriculture and Food Authority has acknowledged the plight of the farmers, vowing to consult stakeholders for further actions. Mogadishu, the agency adds, will have to intervene and fix the imbalance.
Adding another layer to the controversy, Kenyan farmers point to an illegal levy of USD 4.5 per kilogram allegedly imposed by a "cartel" at Jomo Kenyatta International Airport (JKIA). The hidden cost, they said, undermines the Khat farming in the country.
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