The KENYA INSTITUTE for PUBLIC
POLICY RESEARCH and ANALYSIS
No. 21/2022-2023
Thinking Policy Together
Stabilizing the Prices of White Maize in Kenya
By Matilda Owino and Grace Waweru
Introduction consumption of maize in Kenya is estimated at 60kg 
Staple food prices have been on the rise globally, (5kg per person per month), according to the 2019 
especially maize. Maize prices have risen consistently Kenya Maize Flour Market Report. With the increasing 
since the global crisis in 2008 from Ksh 26.45 per kg population, the demand for maize is projected to 
to Ksh 49.79 per kg in 2020. As of October 2022, the reach 60 million bags by 2025. Supply has declined 
price of 1kg dry white maize was trading at Ksh 72 due to decreased production, high fuel and fertilizer 
per kg, a 44.6% increase from 2020. Staple grains are prices, pest infestations, effects of unpredictable and 
very important for food security in Kenya as they form unfavourable weather patterns and supply chain 
a major part of the diet for most people, particularly disruptions that make it difficult to get products to the 
.5,6
the low-income households. In 2020, for example, market
cereals contributed 47.4% of the total daily supply of There has also been a deficit in supply of maize over 
calories, with maize providing most of the calories at the years. In 2017, the country produced 37 million 
52.4%1. bags of maize against the required 52.8 million bags 
in the same year. In 2021, the production of maize 
Price Stability decreased by 12.8% from 42.1 million bags in 2020 
to 36.7 million bags, mainly due to unfavourable 
Rising food prices have a greater impact on low- weather conditions in 2021. Fertilizer prices have also 
income households who spend most of their income been increasing over the years, resulting to decrease 
on food.2 A typical person in a low-income country in its use and hence a decrease in maize yield. The 
spends about two-thirds of their income on food. resulting consequence of these disruptions is a rise 
White maize is one of the least expensive and the in maize prices.
most common food consumed by poor households in The Government of Kenya has put in place various 
Kenya. Therefore, high food prices reduce individuals’ interventions to ensure availability, accessibility and 
food purchasing power, and has distribution effects affordability of maize in the country. For instance, the 
that favour the non-poor more than the poor in low- provision of fertilizer subsidies reduces the cost of 
income countries.3  As such, food inflation increases production and improves its use to increase maize 
poverty and household food insecurity because yield. However, delays in release of subsidized 
most of the population cannot access basic needs, fertilizer continues to hinder timely food production. 
including both food and non-food items. High maize The importation of maize also serves to bridge the 
prices also directly impact on food intake and have gap between high demand and low production in 
been linked to an increase in malnutrition. Rising the country. White maize is mostly imported duty-free 
food prices is associated with reduced demand for from the East African Community (EAC) countries, 
food, and this may have negative effects on health especially from Uganda and Tanzania. Maize from 
and nutrition outcomes. A study in the Democratic countries outside the EAC and the Common Market 
Republic of Congo found an increase in low birth- for Eastern and Southern Africa (COMESA) is subject 
weight babies following an increase in the price of to a 50% import tariff. The gap between production 
staple foods.4 and demand has been widening over time, due to 
The demand for maize has increased owing to the an increase in population and low yield. This has 
growing population and due to the high demand resulted in an increase in maize import quantity and 
for production of non-food products. The per capita hence import inflation associated with the global rise in food prices.
KIPPRA Policy Brief  No.  21/2022-2023 1 
The government established the National Cereals and services that can allow the dissemination of 
Produce Board (NCPB) under an Act of Parliament, information on effective fertilizer use to maize 
Cap 338, whose one of its mandates is to procure producers.
and sell maize at administratively determined prices 
and keep strategic grain reserves. This is with a view (iii) Increase the area under maize production in 
to stabilizing maize market prices in the country. the country. This can be done through targeted 
However, this has failed to take effect over the past investment in irrigated agriculture, thus making 
years due to maize shortage and the hoarding of use of the arid and semi-arid lands. This will 
maize by large-scale farmers as they anticipate better lead to increased production, thus increasing 
prices. This tightens the maize supplies in the market, availability of maize commodities in the market. 
keeping maize prices high.
Endnotes
Policy Recommendations 1. Kenya National Bureau of Statistics (2021), Economic Survey. 
Retrieved from https://www.knbs.or.ke/.
To enable stable maize prices, the following policy 
recommendations are proposed: 2. World Bank (2022), Poverty. Retrieved from https://www.worldbank.org/en/topic/poverty/overview.
(i) Promote targeted support to farmers through 3. De Hoyos, R.E. and Medvedev, D. (2011), “Poverty effects 
public private partnerships to increase yield of higher food prices: A global perspective”. Review of 
so that the supply in the market is adequate to Development Economics, 15(3): 387-402.
meet demand. This can be done by increasing 4. Delpeuch, F., Traissac, P., Martin-Prével, Y., Massamba, J.P. 
the capacity of producers to use modern and Maire, B. (2000), “Economic crisis and malnutrition: 
food production technologies such as farm Socio-economic determinants of anthropometric status of 
mechanization, use of high yielding maize preschool children and their mothers in an African urban 
seeds and irrigation. area”. Public Health Nutrition, 3(1): 39-47.
5. Mohajan, H. (2014), “Food and nutrition scenario of Kenya”. 
(ii) Subsidize farm input, including fertilizer and American Journal of Food and Nutrition. 
seeds to reduce the cost of production. To 
improve the effectiveness of fertilizer subsidies, 6. WFP (2022), Fertilizer price impact on 2022 cereal production in Eastern Africa. https://reliefweb.int/report/world/fertilizer-
there is need for policies that focus on support price-impact-2022-cereal-production-eastern-africa-
june-2022.
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2 KIPPRA Policy Brief  No. 21/2022-2023