Food consumption patterns and distributional welfare impact of import tariff reduction on cereals in Kenya

This study determines household food consumption patterns in Kenya using a QAIDS framework employing 2005/2006 household budget data. The results are used to evaluate the distributional welfare effects of import tariff reduction on three important staple cereals, namely maize, wheat and rice. The results indicate that food prices, income and demographic factors influence patterns of rural and urban household food demand. Furthermore, import tariff reduction has a progressive welfare effect on urban and upper-income rural households, but a regressive effect on lower-income rural households. The study recommends policies that will improve income generation and widen the tariff reduction bracket.