KENYA FOOD SECURITY | A critical view

Co-Author :  Victor Daniels

On February 22, 2010, a senior policy analyst with the Kenya Institute for Public Policy Research and Analysis (KIPPRA), was quoted saying, “we have a challenge in the management of our public affairs [and] the management of our food stocks. Sometimes we are exporting food yet we later need to import. There is failure to learn from best practices, to invest in knowledge and transform that knowledge into action.”

According to OneWorld UK, the UN “estimates that 3.5 million Kenyans will require food assistance, a figure that may rise before the end of 2011.” However, the assessments updated on July, 2011, “exclude the Somali refugees located in the Dadaab camps in eastern Kenya whose plight is managed as an international refugee crisis, as distinct from Kenya’s national food insecurity.” Scholars have blamed the looming food crisis in Kenya, not only on the failure of successive seasonal rains, but also on poor standards of governance, and mismanagement of the agriculture sector, coupled with lack of political goodwill. Providing credit facilities to farmers, setting up micro-irrigation schemes, and cash transfers to poor farmers, as well as effecting input subsidies are just but a few ways to begin the comprehensive process, to realize food security in Kenya.

Kenya Food Security

In light of the above, an economy should be based on a long-lasting, reliable system, not on slavery, and coercion. Our economy relies on greed, and a serious lack of thought about consequences. That is a very unstable sort of economy. A lucid socio-economic analysis of the mechanisms of exploitative processes in the Kenyan economy brings out Kenya’s predicament in the light of under-hand shady policy making, which is not exclusively Marxist, but still draws heavily on that school of thought. Even before the fall of the KANU regime, the prices of prime commodities such as tea, sugar, rice, and maize, have constantly been rising, which creates a conflict of interests considering we locally produce the same. Where does the buck stop? Can we still interpret this, as Kenya’s success story? Are the Kenyan food policies a success in terms of growth, or total output? The time has come to reappraise agricultural pricing policies in general, so that agriculture makes its optimum contribution to maximizing gross national production. For maize, the Kenyan staple grain, the producer’s selling price should be reviewed, and be set at the relevant export parity price. The consumer price should be down to a comfortable level, thus, the price should be set at the producer’s selling price, plus marketing costs- incurred in distributing the maize to consumers. It is true that costs are rising, but then, if a justified investment policy was directed for export, we would expect the abolition of domestic marketing, thus, providing comfortable floor and ceiling prices. Starvation in most Kenyan regions remains to haunt us due to the government’s sub-standard reckoning, without political goodwill for the Kenyan people. Well known Members of Parliament, politicians, senior civil servants, and business men affiliated to high echelons of power, have repeatedly been accused with controversial maize and sugar imports and exports, but still, calls to prosecute the alleged suspects, go unheeded. Impunity and indecisiveness, thrives at high levels of governance, and on the miseries of the citizenry, where justice refers to how deep your pockets are. Budgetary allocation for the Ministry of State for Development of Northern Kenya and Other Arid Lands is irrelevant, if the people meant to be protected by the same, are dying of acute food shortage, and malnutrition. The chronic famine situation in Kenya, signals a malfunction in the governance of the Kenyan democracy. Kenya truly needs, a decentralized system, of running State affairs. Focus should be on the people and their strengths, instead of importing western innovations, and ideologies. Since we should be the change we want to see, we should put an end to popularistic politics, and deal with real issues affecting Kenyans on the ground, in a comprehensive manner.

References:

Food Security in Kenya-briefing OneWorld UK, July, 2011

Experts voice food security concerns IRIN Africa, February 22, 2010

Outrage over rising food and fuel prices IRIN Africa, April 20, 2011

 

 

Raise in Oil Prices, Weak Shilling

The volatile situation in Libya and the unrest in other Arab States have seen crude oil prices shoot upwards on the global market. These recent developments have inflicted a budgetary shock on Kenya’s oil import projections. The effect of the rising oil prices has been manifested in a weakening Kenyan shilling, compounded by increased political activity over the nomination of key state jobs.

Prime Minister Raila Odinga, in a statement made in parliament said that, “Kenya’s oil import bill could rise by $700 million or 2% of GDP.” The Central Bank of Kenya, increased its key interest rate in an effort to defend the weak shilling and curb rising inflation, saying, “temporary rises in oil and food prices linked to unrest in North Africa and drought at home, were becoming embedded and the inflation rate was set to creep up from 6.5 percent over the next two months.” In reference to a paper commissioned by the Energy Sector Management Assistant Programme (ESMAP) ,“as part of an investigation on energy security issues from the perspective of developing countries…”, the study found out that, “oil importers immediately face a larger import bill and unless the country is already running a surplus, or has extremely large foreign exchange reserves, this must be met by a reduction in total demand for all imported goods, so as to restore balance of payments equilibrium.”

This situation will without doubt exert more pressure on household final consumption expenditure, and in the long-run may lead to a slowdown on investment, thus reduced domestic production. httpv://www.youtube.com/watch?v=y_1JIPxUKEw  Maybe it is high time to embrace the benefits of East African Community common market as this will greatly strengthen the local monetary unit due to enhanced productivity and efficiency in allocation of the factors of production, as well as safeguard against the far reaching effect of budgetary shocks fueled by rise in costs of essential imports.

References:

Kenya raises rates to defend shilling,curb inflation 22/03/2011

Kenya’s shilling weaker vs dollar; politics weighs 4/02/2011

Shilling in loosing streak against major currencies 25/02/2011

The Macroeconomic Effects of Higher Oil Prices (As of March, 2005)