Citation:

Kariuki Josphat Muiruri, Gabriel Mwenjeri, George Kariuki. "Food Demand Patterns and Short-Term Impacts of Market Shocks Among the Low-Income Households in Nairobi City County, Kenya" International Research Journal of Economics and Management Studies, Vol. 4, No. 6, pp. 87-92, 2025.

Abstract:

This paper examined household food demand patterns and short-term impacts of market shocks among low-income households in Nairobi City County, using cross-sectional data from 300 households. This study applied the Quadratic Almost Ideal Demand System (QUAIDS) model to estimate both expenditure and price elasticities for six aggregated food groups: cereals, pulses, meat and fish, vegetables/fruits, sugars/oils/fats, and dairy products. This approach captured how households adjusted food consumption in response to changes in income and prices. While prior research in Kenya primarily focused on rural settings or disaggregated food items, this study uniquely applied QUAIDS to aggregate food categories in an urban informal settlement context. The empirical results showed that all food groups were normal goods with positive expenditure elasticities. Pulses, meats, fish, and sugars/oils/fats had elastic expenditure responses above one, indicating their classification as luxury goods. In contrast, cereals, vegetables/fruits, and dairy products were income-inelastic and thus considered necessities. Both compensated and uncompensated price elasticities were negative, aligning with the theory of consumer demand. Meat and fish, dairy products, and cereals exhibited the highest price sensitivity, reflecting strong substitution patterns. The findings also highlighted that during price shocks, households shifted consumption away from nutrient-rich foods towards energy-dense, lower-cost alternatives such as oils and cereals. This coping mechanism underscored the vulnerability of low-income urban households to economic shocks. These insights highlight the importance of targeted food security policies, such as price stabilization, social protection, and nutrition-focused subsidies, in safeguarding dietary quality and resilience in low-income urban settings.

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Keywords:

Elasticity, Food and Nutrition Security, Food Demand Patterns, Low-Income Households, Market Shocks, QUAIDS Model.