Kenya’s informal milk markets and the regulation–reality gap

Abstract

Summary Motivation Around 80% of milk in Kenya is marketed informally, providing livelihoods and contributing to the food security and nutrition of low‐income consumers. Government policy, however, is focused on formalization—primarily through licensing and pasteurization—with enforcement via fines, confiscation of milk, or closing the premises of informal actors. Purpose This article seeks to better understand if, and why, Kenya’s informal milk sector and regulatory system are disconnected from one another and how the policy–reality gap might be better bridged. Methods and approach To understand the nature and performance of Kenya’s informal milk markets and their governance, we used a mix of research methods and data sources, including surveys with informal market players, and key informant interviews with key sector stakeholders. Fieldwork was carried out in Nairobi in late 2018. Findings Milk safety and quality matters to all actors in informal milk value chains. The trust‐based system used is effective in moderating behaviours and assessing and prioritizing quality and safety. Government policy is not accomplishing the stated goal of formalization: licensing levels remain low among informal actors. Pasteurization is not rewarded in the market. There is some evidence of suboptimal pasteurization processes being undertaken to satisfy regulators. There is a gap between the reality of Kenya’s informal milk sector and its regulatory system. Policy implications The regulation–reality gap manifests itself as adversarial relationships between regulators and informal actors, and unnecessary transaction costs, missing opportunities for enhancing livelihoods, food safety, and food security. New approaches should build on and consider existing approaches taken by actors in informal food markets to ensure food safety and quality. Policy‐makers should seek to communicate more effectively with informal actors and engage in more constructive dialogue on inclusive ways forward.

The governance of quality and safety in Tanzania's informal milk markets

“…Moreover, our results show that producers, intermediaries and vendors are concerned about milk safety and take measures to ensure food safety such as cleaning their containers regularly, washing their hands and keeping their premises clean. This is consistent with evidence from Kenya (Blackmore et al, 2021) and South Africa (Campbell, 2011), where street vendors were found to have adequate information regarding food safety principles and to ensure safe practices in food preparation.…”

“…In practice this means that informal milk trade exists and persists without government interference. This sets it apart from the adversarial relationships between regulators and informal actors found in several other low-and middle-income countries, whose contexts are defined by harassment, forced relocations, confiscation of goods, and physical abuse (Patel et al, 2014;Resnick, 2017;Grace et al, 2019;Young and Crush, 2019;Blackmore et al, 2021).…”

“…The decline in capacity of government-led extension and technical assistance services in Africa is well documented, as is the general constraints on the private sector stepping in to fill that gap, especially for the low-income majority (Christoplos, 2010;Salami et al, 2010). The government's hands-off approach to managing the sector may change in the future, to be more in line with neighboring countries such as Kenya (Blackmore et al, 2021)-that may come in the form of support for upgrading or possibly greater scrutiny and criminalization. Either way, a failure to base food safety policy on evidence may jeopardize the poor who dominate and rely on informal markets and value chains (Grace et al, 2007;Roesel and Grace, 2014).…”

“…However, this modernization agenda is unlikely to be relevant to most people and trade where informal food markets/systems continue to dominate. Evidence suggests traditional approaches to food safety persist even in the context of income rises and modernization of retail (see e.g., Wertheim-Heck et al, 2014 for Vietnam and Blackmore et al, 2021 for Kenya).…”

“…Regulations are interpreted differently by different government actors, and those that could feasibly be used to criminalize informal milk traders are not enforced. Yet, as seen in other low-and middleincome countries, there may be a growing push for stringent formalization of the sector on the grounds of food safety (Blackmore et al, 2021). This paper explores the tensions between the official vision of modernity in food systems and the reality of informal trade through the lens of milk quality and safety in Tanzania.…”