Policy Brief No. 21 of 2022-2023 on Stabilizing the Prices of White Maize in Kenya

Abstract

Staple food prices have been on the rise globally, especially maize. Maize prices have risen consistently since the global crisis in 2008 from Ksh 26.45 per kg to Ksh 49.79 per kg in 2020. As of October 2022, the price of 1kg dry white maize was trading at Ksh 72 per kg, a 44.6% increase from 2020. Staple grains are very important for food security in Kenya as they form a major part of the diet for most people, particularly the low-income households. In 2020, for example, cereals contributed 47.4% of the total daily supply of calories, with maize providing most of the calories at 52.4%1. Price Stability Rising food prices have a greater impact on lowincome households who spend most of their income on food.2 A typical person in a low-income country spends about two-thirds of their income on food. White maize is one of the least expensive and the most common food consumed by poor households in Kenya. Therefore, high food prices reduce individuals’ food purchasing power, and has distribution effects that favour the non-poor more than the poor in lowincome countries.