Macroeconomic Policy Reforms in Kenya: Are There Lessons for Other African Nations?

This paper discusses Kenya’s macroeconomic policies during the 1980s. It specifically analyzes issues of food security as it relates to market performance and policies. This is followed by projections of the effects of various policy changes and market conditions on grain production, consumption, and imports over a five year period. It appears that structural adjustment policies have consequences on both the production and consumption of food. Price incentives alone do not guarantee increased food production. Adoption of improved technologies is a critical factor. On the consumption side, governments must recognize that removal of consumer subsidies for the lowest income groups will have major implications for labor productivity and health costs.