Decontrolling the maize marketing system in Kenya

Abstract

In this paper the authors assess the major deficiencies of the present maize marketing system in Kenya, discuss the implications of a completely decontrolled maize market, analyse the effects of different types of stabilisation schemes, and review the Indian and Pakistani experience with private performance and various types of government intervention in food grain marketing systems. An alternative scheme for regulating the Kenyan maize market is suggested and proposals are made for the implementation of such a scheme. The most appropriate form of control of the maize marketing system in Kenya would seem to be a price stabilisation scheme with bufferstock operations to be carried out by the Maize and Produce Board. The Board would act as a buyer and seller of maize to keep price fluctuations within certain limits, and in addition keep a strategic reserve in case of drought. The implementation of this system requires a network of rural collection centres and Maize and Produce Board stores, located in these centres as well as in strategic markets in deficit areas. A market information system has to be established and movement restrictions lifted, and the price structure and rules for the Board's operations have to be clearly defined.