• Dr John Messo

Governments have a significant role in ensuring citizens access to sufficient food and proper nutrition. However, Kenya faces food production and pricing challenges, leading to severe food insecurity. The government has launched several programs to address this issue that support farming. As part of the solution to the problem, this study examined the effects of the forward contract market on food security in Kenya. The study was guided by forward contracts theory, contango and backwardation theories, theory of price, and food security theory. It used a mixed design that combined descriptive and inferential statistics on a sample of 1000 respondents from ten counties in western Kenya and collected data through questionnaires and schedules. The research found that the effect of forward contract market on food security was significant at a five per cent significance level. Hence, it concluded that the forward contract market affected food security in Kenya. The results will benefit farmers, agriculturalists, the government, and the general public in trading the produce, determining fair prices, regulating and controlling agricultural and commodity markets, supplementing the existing research in this field, and contributing to future research. The study recommended the establishment of a futures market for derivatives to improve regulations, help brokers and market players comply with rules, provide farmers with a better understanding of food production, build confidence among investors and the public, establish relevant policies to enhance farming efficiency, provide better liquidity, and mitigate individual stock risks.

forward contract market, food security, price discovery

"FORWARD CONTRACT MARKET AND FOOD SECURITY IN KENYA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 2, page no.f113-f136, February-2024, Available :http://www.jetir.org/papers/JETIR2402516.pdf

"FORWARD CONTRACT MARKET AND FOOD SECURITY IN KENYA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 2, page no. ppf113-f136, February-2024, Available at : http://www.jetir.org/papers/JETIR2402516.pdf