An analysis of the demand for fresh fruits and vegetables in Nairobi, Kenya

Abstract

Fruits and vegetables are an important source of food for a large number of Kenyans and comprise a part of every household's diet. They play an important role in nutritional balance, as they are rich in vitamins and other nutrients that are vital in healthy diets. Despite the important role they play, the consumption patterns of these commodities in Nairobi are not well understood; hence a need to undertake empirical studies that generates this kind information in Nairobi. This study evaluated the consumption patterns of fresh fruits and vegetables in Nairobi. Data for the study was obtained from a household expenditure survey conducted by the Egerton University's Tegemeo Institute between June and July of 2009. A linear almost ideal demand system (AIDS) was estimated using a seemingly unrelated regression (SUR) approach. The fruit and vegetables were mostly price inelastic, ind{j~fi~g that they were normal goods. The crossprice elasticities for both the fruits and vegetables were either negative or positive, indicating that some commodities were gross substitutes whereas others were gross complements. Kales, • onion, mango and avocado exhibited positive expenditure elasticities that were greater than one; an indication that they were luxuries. This study recommends that the government puts in place policies that address production and marketing systems with the aim of increasing the availability of fruits and vegetables to Nairobi households. In addition, the government should look at price and income policies that address the availability of and the access to the most commonly consumed staples in the country.