Agricultural market integration in Kenya

Vast areas of arid and semi-arid areas of Kenya are faced by development inequality, poverty and food insecurity. The study on market integration aims to provide insights for enhanced market access. The recent food crises are of food policy concern on scarce resource distribution under transaction costs. The research investigates whether surplus and deficit regional maize markets are integrated. Particularly, the study aims at providing insights for enhanced participation of marginalized smallholders into commercialized agriculture through improved market access. It further assesses the adjustment period for prices shocks in regional maize markets. The study carries out simulations of the impacts of price volatility and transaction costs on economic agents along maize supply chain in marginalized areas of Kenya. It is evident that though liberalized free trade market economy system, agricultural and trade policies require further reforms for effective supply and demand response. Though, there is need to stabilize extreme price volatility to avert consequences on poor population. Since market systems in Kenya lack coordinated stakeholders’ holistic approach, there is a need to promote integration of key players in the public and private sector for reducing transaction costs.