Analysis of Competition in the Wholesale and Retail Markets for fish in Kisumu, Kenya

Abstract

This study analyses competition in the wholesale and retail fish marketing system in Kisurnu, which is Kenya's largest fish market. It is based on cross sectional and time series primary data collected in a survey involving 88 retailers and 47 wholesale traders of fish in the town. Stratified random sampling method was used in selecting the respondents. Concentration ratios, Lorenz curves and Gini coefficients are derived and evaluated for both markets. They demonstrate that market shares are unequally distributed among the wholesalers and retailers. The Gini coefficients are 0.37 and 0.45 for the whole and retail markets respectively. Based on a Gini coefficient cut-off level of 0.4, it is concluded that the wholesale fish market exhibits effective competition while the retail outlet has oligopolistic tendencies. The implication of this level of competition to price efficiency is discussed. Intervention measures to enhance competition in the market are recommended.