Abstract:
Kenya, like most countries in the Eastern and Southern Africa region, has continued to be
overwhelmed by high and volatile food prices. In an effort to mitigate this problem, the government
has implemented various trade and marketing policy instruments. The aim of this study is to examine
whether the policies implemented have achieved their desired effects. The results of the study
demonstrate a significant difference across the different policy regimes. Higher price transmission
and faster dissipation of price shocks are observed under the regime with minimal or no policy
interventions. Under policy regimes implemented to mitigate against high food prices, the reverse is
true. Policies implemented to mitigate against price hikes resulted in market distortion. For these
policies to achieve their desired effects, there is a need for proper consultation and coordination
between government institutions, a review of the import ban on GMO foodstuffs, and distribution of
the subsidised fertiliser through the private sector.
