The marketing of maize and beans in Kenya: a proposal for improved efectiveness

Abstract

Continuing the discussion by O.Hesselmark and G. Lorenzl in "Structure and Problems of the Maize Marketing System in Kenya", Zeitschrift fur Auslandische Landwirtschaft. Berlin 1976, this paper attempts to give additional information on the functioning of the Maize Marketing System, and to give suggestions on how its functions could be improved.

There is a long history of market regulations in Kenya which is important for an understanding of the present situation. A brief historical description is given, including past legislation and an attempt to identify the beneficiaries of earlier system and how the present situation has grown out of the past. The present functioning of the system is illustrated with the help of four cases of the actual behaviour of the MPB and the produce markets, and a number of deficiencies and inefficiencies are described. The possibilities of redefining the role of the MPB within the framework of the existing legislation are discussed. It is concluded that a great deal can be done to improve the functioning of the system without any fundamental changes of the legislation; the MPB has a statutory responsibility for effective functioning of the marketing system, the possibilities of which are not exhausted.

For a more fundamental improvement of the effectiveness of the marketing system, however, far-reaching changes will be required. A redefined role of the MPB in a situation of free trade is described in detail down to the operative functioning of a reorganised and reoriented MPB. In this situation, the MPB is seen as an organization playing the part of primus inter pares provided with the operational and financial resources necessary to perform the role of active market stabilizer. The set of objectives, policies, decision rules and operational rules necessary for this function are outlined together with a discussion of the information needed. The financial implications for the MPB of market stabilization are discussed briefly, together with the needs for training a personnel for the new functions.

In two appendices, a resume of earlier discussions of the problem of free trade and of the frequent discussion of the smuggling problem is given.