If there’s no solution, brace yourselves for food riots

Let’s look at the matter afresh and discuss whether it makes sense to maintain maize and wheat import tariffs in the context of large import price parities and huge deficits in local production.

Several years ago, we abolished both the Maize and Produce Board and National Sugar and Cereal Corporation. But real liberalisation of the sector started in 1992.

In 1999, we brought the National Cereal and Produce Board back into grain purchasing at fixed prices. Clearly, these fixed producer prices and the import tariffs have merely served to raise local consumer prices ,especially in the major urban areas like Nairobi and Mombasa, and the drought-probe areas of Eastern Kenya.

Admittedly, there is a strong case for guaranteeing good prices to maize farmers.

But we must strive to hit the optimum between this objective, and the case for moderating extreme price fluctuations for a strategically important crop such as maize.

Because of the dominant role maize holds in every basket of goods, the price of the commodity influences the general level of prices in the economy. If we don’t act quickly, we must brace ourselves for food riots.