Abstract:
Agricultural development policy in Kenya has emphasised the use of incentives towards increased production and
therefore self
-
sufficiency in maize which is a basic staple for
most households.
The channels used to provide
incentives to maize farmers over the years include setting higher producer prices; subsidisation of inputs; provision
of agricultural credit, research and extension services; construction and maintenance of roa
ds, development of
irrigation and water systems; legislative, institutional and macroeconomic reforms. Despite these efforts outputof
maize has remained below domestic requirements in most years and the country continues to rely on imports to
meet the defi
cits. Studies have assessed the responsiveness of maize to output price and reported inelastic responses
and have recommended policies targeting non
-
price incentives to complement prices for the required increased
production of maize. The studies, however,
did not analyse the influence of the non
-
price incentives on the
production of the crop. The findings of those studies are therefore deficient in explaining the relative importance of
different non
-
price incentives and how they complement prices in influe
ncing maize production in Kenya. This study
investigated the response of maize production to both price and non
-
price incentives. The aim of this study was to
ascertain the relative importance of non
-
price factors in influencing production of the crops as
well as
complementarity between price and non
-
price incentives. The findings show that maize production responds
positively to its output price, development expenditures in agriculture, maize sales to marketing boards, growth in
per capita GDP, liberalisat
ion and governance reforms. However, maize production responds negatively to fertiliser
price and unfavourable weather conditions. The response of maize output to its price is lower with rising inflation
and grain market liberalisation.