dc.description.abstract | Wheat is the second most important food crop in Kenya. Wheat production has
however declined over the years due to high production costs, high capital costs,
lack of credit for production, and the low level of technology-adoption in wheat
production. Kenya has had to rely on wheat imports to meet the domestic and
regional demand for wheat and wheat products. Increased wheat imports have
led to a further decline in wheat production because imports dampen domestic
prices, which is a disincentive to production. Kenya’s exports of wheat products
have also faced increased competition because of the high cost of domestic wheat.
These factors combined could lead to collapse of the domestic manufacturing
industry and consequently loss of employment and livelihood of many Kenyans.
This study reviews the constraints faced by the wheat industry in Kenya and
proposes policy options that can be considered in developing the wheat industry.
Although Kenya does not have a comparative advantage in wheat production,
the country benefits from regional trade in wheat products. However, since the
country faces competition from other countries, there is need to relax the
constraints in wheat production, manufacturing of wheat products, and in
marketing of wheat products in the domestic and regional markets. Research,
extension, credit and marketing functions need to be adequately funded in order
to encourage increased domestic production of wheat. Import taxes and duties
on wheat imports should be eliminated to avoid protecting inefficient producers.
Input supply and output marketing needs to be made competitive through
provision of improved infrastructure services. There is also need for better
management of policy on wheat imports and trade to avoid distortions in the
wheat market. Finally, wheat farmers and manufacturers of wheat products
need to be provided with information regarding regional market conditions. | en |