A Review of government fiscal policies on maize production in Kenya: 1998- 2017

Barasa, Teresa Nakhungu
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Strathmore University
The government of Kenya expends on maize production- a fiscal policy measure- to meet the growing demand for maize owing to population growth and to safeguard our national food security. Post-independence, the government regulated the maize subsector up until the structural adjustment programs liberalized the maize market. The study is a review of fiscal policies on factors of production in the maize subsector. Market failure pervaded by maize shortage persists, threatening our food resilience. An average of 30% of the population is at risk of a food crisis from a maize shortage. Pareto efficiency remains elusive in maize production owing to fixity in the input factors. The ensuing market failure characterized by maize deficits provides a rationale for government intervention. It is on this basis that the study sought to review fiscal policies, specifically government expenditure for maize production. This review was undertaken for 20 fiscal years and maize production with statistics from budget statements for the period 1998 to 2017. Exploratory data, correlation, and contents analysis were undertaken on maize production indicators and budget statements respectively. The review established arbitrary fiscal policy measures on factors of production by the government for maize production continued shortages and a growing import incidence. This is despite a linear relationship between maize consumption and food insecurity. The study recommends a systemic legislative framework and government spending on land, labor, and capital promoting maize production for national food security.
Submitted in partial fulfilment of the requirements for the degree of Master of Public Policy and Management at Strathmore University
Maize production, Market failure, Food security, Fiscal policies, Factors of production