Review of maize marketing in Kenya: implementation and impact of liberalisation, 1989-1999.

Abstract

Maize is the key food crop in Kenya, with estimated production (1998) of 3 million tons of which about 40% are marketed. The Government strictly controlled all aspects of maize marketing until 1986 when gradual liberalisation started and this was completed in 1995. The objective of this study is to assess the degree of policy implementation and the impact of liberalisation of maize marketing on stakeholders between 1989 and 1999. The method of the study included review of available literature, conduct of interviews with stakeholders and the authors’ personal observations of maize marketing activities. Results indicate that liberalisation was implemented without the formation of alternative marketing institutions. Also, maize prices fluctuated substantially according to competitive market forces with limited moderating effects from the Government through open market interventions and import tariffs. But soon the rules of regional and worldwide trading organisations will render this impossible. Private sector participation at all levels in the marketing system increased substantially. There is easy maize flow and supplies to all parts of Kenya. One recommended intervention is to form maize farmer-based institutions for the marketing of maize, provision of maize market information and credit. Further studies should assess the impact of liberalisation and continued regulation of maize imports on producers and consumers.