Regulation desirable when customers are exploited

PHOTO: COURTESY

Kenyans eat a lot of maize. Which is why, despite the fact that the National Cereals and Produce Board continues to make heavy losses, it is maintained afloat by taxpayer money to guarantee availability of the staple food. In fact, it is apparently cheaper to import maize than to grow it in Kenya. Which is why the government slaps taxes on any imported maize.

I bring this up because it is always interesting to see arguments for a free market and self-regulation being zealously recited whenever there is a proposal to legislate on some key sector. If market forces were so good at guaranteeing the lowest possible price, why does the government keep trading maize?