This report reviews government policies concerning consumer food prices in Kenya. In respect of official food pricing, Kenya can be said to pursue a 'cheap food' policy. It was found that most... Show moreThis report reviews government policies concerning consumer food prices in Kenya. In respect of official food pricing, Kenya can be said to pursue a 'cheap food' policy. It was found that most foods falling under price control measures showed less price increases than the average rate of inflation during recent years (1975-1984). Moreover, when compared to international prices, the data reveal that domestic maize prices (maize is Kenya's staple food) were kept well below comparable world market prices for this commodity. Official food pricing policy, however, does not reach the majority of the Kenyans who live in the rural areas. Here, consumer prices are determined by market forces, i.e. by varying local supply conditions, and there are substantial price variations, both seasonal and regional, even between adjacent rural markets. These price variations are further aggravated by the government's stringent regulations on food transports across district boundaries. It is therefore widely recommended that the (maize) food sector be liberalized by lifting movement controls and allowing private traders to participate in maize trading operations, although it remains to be seen whether this will in fact lead to less fluctuating food prices in rural Kenya. Show less
