Discussion Paper No 293 of 2022 on Access to Maize Retail Markets and the Impacts of Rural Road Infrastructure in Kenya

Abstract

Market access, influenced by transport infrastructure, plays a crucial role in promoting food security, productivity, income changes, and food price stability. Addressing food scarcity and high prices is vital for developmental priorities. This paper assesses the impact of rural transport costs on local maize prices, a key staple food in Kenya, considering the disparities in rural road development and food poverty across the country. The results reveal geographical dynamics of market integration, concentrated in areas with high agricultural potential and better road infrastructure. While some markets show price co-movement, others remain unconnected. Food poverty is more severe in areas with fewer clustered food markets. Improved rural road infrastructure is associated with lower maize prices in retail markets, and spatial dependence in maize prices exists between neighboring counties, influenced by transport networks. Strengthening market linkages through rural road infrastructure can enhance food access, price stability, and local market integration in Kenya