Maize prices in Kenya and Malawi have soared, but Tanzania’s haven’t

For more than a year maize prices in Kenya and Malawi have been much higher compared with other countries in the east and southern Africa (ESA) region. Several factors explain this. In Malawi, high fertiliser prices which resulted in lower fertiliser usage affected maize supply. This was compounded by adverse weather and trade bans, leading to lower-than-usual production. In Kenya, high maize prices have been driven up by excessive margins. Sellers are charging prices that are more than the import parity price – the maize price from surplus producing countries, plus transport costs for importing into Kenya. This is particularly concerning for a country with about 1.2 million of the population facing acute food insecurity. We are economists at the African Market Observatory, which monitors prices of staple foods and conducts research on market dynamics, including market concentration and barriers to entry, within and across countries in ESA. The analysis is complemented through ...