Miraa growers, transporters and traders face huge losses after Somalia ban

Transporters, farmers and traders are staring at big losses after the cancellation of all flights ferrying miraa to Somalia took effect yesterday.

Miraa worth more than Sh60 million destined for Mogadishu was still stuck in Nairobi one day after the Horn of Africa nation issued the ban notice that has otherwise been ignored by Puntland.

The more than 450 bags of miraa remained at the airport after the ban grounded five cargo planes that were destined for Somalia.

About eight tonnes of khat were also set to be returned to Meru yesterday after the cancellation of flights.

Nyambene Miraa Traders Association spokesman Kimathi Munjuri, however, said no cargo planes destined for Somaliland were operating.

On Monday, Somalia minister for of Civil Aviation — Ali Ahmed Jangali — said the country had decided to temporarily suspend all khat (miraa) imports to Somalia from yesterday.

In a letter addressed to Miraa Cargo Operators, Mr Jangali said: “While considering special circumstances, Somali Civil Aviation and Meteorology Authority on behalf of the Federal Republic of Somalia is hereby informing all miraa cargo operators and anyone it may concern that miraa cargo flights and its operation into Somalia have been cancelled until further notice.”

The minister also said any “violation on the Somali airspace and disregard of this notice will have consequences”.

Mr Munjuri says about 15 to 20 flights of miraa cargo leave Nairobi for Somalia every day. Some of the stimulant also makes its way to Somaliland and Puntland, which are autonomous states.

“Each aircraft carries about 90 bags of miraa. Each bag is sold at between $700 and $1,000 (Sh100,000). The present market price per bag is $700 translating to more than Sh70,000 at the current exchange rate,” he said.

The losses, he says, would have been much higher but ‘it seems some traders were aware and did not transport it to Nairobi.’

“This kind of step needs some notice to exporters and operators. When we dispatched supplies to Somalia on Monday morning, there wasn’t even an indication of such a move. We are, however, gearing up to use alternative airports in Gulmudug State. The flights will be directed to Bosaso and Galcaio airports,” he said.

Mr Munjuri said the khat which had not reached the airport would be returned to Meru to facilitate replacement.
“Since there is no immediate solution to the stalemate, there is no need to hold on to yesterday’s supplies. But some traders are engaging the Kenya airports management to establish what is happening. We are also consulting Kenyan leaders to know the way forward,” he said.

Normally, suppliers buy from farmers before loading pickups which transport the stimulant to Nairobi and other parts of the country.

“We have no way to collect our outstanding dues since it is the practice to supply an agreed number of loads before being paid,” said Mr Munjuri.

Mr Jeremiah Mutwiri, a trader who rents miraa farms and sells to Somali transporters, says he is likely to lose up to Sh5 million this week.

“I had rented farms worth Sh5 million and were all ready for plucking this week,” he said.

Mr Mike Mutembei, a trader, said Somalia was one of the largest markets for the crop.

“They (Somalis) have been the largest consumers. More than 50 per cent of the crop harvested was being exported there. We now face an imminent threat to the stimulant that was declared a cash crop recently,” he said.

On the other hand, farmers who were to harvest their twigs this week have expressed fears that they may suffer huge losses.

Mr Joseph Muturia, a miraa farmer, says he may lose miraa worth Sh300,000 following the cancellation of flights.

“I was to harvest my crop this week but it seems I cannot fetch more than Sh20,000. The closure of Mogadishu means the local market will be saturated leading to a big drop in prices,” he said.

Due to the dry weather, farmers spend money on buying irrigation water to increase yields.

Antubetwe Kiongo MCA George Kaliunga, who is also a miraa farmer, says he had held on his trees to enable him improve earnings.

“I am likely to lose Sh100, 000 worth of miraa if the market is not restored,” Mr Kaliunga says.

Miraa task force chairman Mwenda Nchooro said they are engaging the relevant authorities to reverse the decision.

Until 2014, the UK was the biggest export market for miraa.

Kenya used to export about 20 tonnes of miraa weekly the UK before the ban two years ago.

The miraa exporting community has been hard hit by the ban that rendered the lucrative European market inaccessible. Large Somali and Kenyan communities, especially in the Netherlands and the UK, have traditionally been loyal consumers of miraa imported from Kenya.

The Netherlands was used as a gateway for distributing miraa to other European countries where miraa was not officially allowed, so when Dutch politicians banned the leaves in 2013, it was the first blow for the Kenyan miraa industry.

Farmers have been pushing for opening of markets in Tanzania, Uganda, Rwanda, Burundi, Zambia, Democratic Republic of Congo, South Africa, Botswana, Namibia and West Africa.