Abstract:
After reviewing trends in the production and marketing of fresh produce for the domestic
market in Kenya since 1997, this paper presents detailed information on the structure of
the flow of this produce from rural areas to wholesale markets in Nairobi and from those
wholesale markets to assorted retail markets. Market shares are estimated by product for
geographic areas supplying Nairobi, and for each important wholesale and retail market
in the city. It is found that horticultural production for the domestic market is keeping up
with rural population growth but not with the much faster urban population growth. The
urban wholesaling and retailing system has decentralized dramatically and with little
planning over the past two decades in response to lack of investment in public market
places. In the current system, all participants are subjected to high costs and poor quality,
and many traders, especially but not only those in kiosks, are subject to theft and even
bodily injury. Collaborative planning for new investment between city officials and
farmer- and trader organizations is badly needed; positive signs of movement in this
direction include a more constructive approach to kiosks and joint public/private planning
for a new wholesale market outside Nairobi. As new approaches to wholesaling and
retailing are considered in response to Vision 2030, the continuing importance of existing
market places means that complementary improvements in these markets, at the same
time that investments in new markets are being made, will have major positive effects on
farmers and consumers.
