Difference between revisions of "Mzungu price (Kenya)"

|style="font-size:1.1em;"| The word ''mzungu'' is a popular Swahili term for white people or Europeans (Spitzer 2017). A ''mzungu price'' is the price charged by Kenyans to usually white foreigners and tourists, which is normally higher than what locals would be asked to pay. Charging foreigners a higher price is common in developing countries in Asia, Africa and the Caribbean. In Kenya, it first appeared in urban street markets and has now become common throughout the country. Racial inequality contributes to the emergence of ''mzungu price''. The word ''mzungu'' conveys money and wealth. The belief that to be white is to be superior is a lasting consequence of the country’s colonial past, as is the phrase ‘West is best’ (MacOireachtaigh 2015). In a country where racial inequality is substantial, white skin is equated with privilege.  

The emergence of ''mzungu prices'' is largely attributed to the growth of informal economic activities in Kenya. In the early 2000s, employment in the informal sector increased by around 5 million, reaching 64 per cent of total employment in 2011 (Escudero ''et al.'' 2013). The institutional environment in Kenya disincentivises street traders from acquiring a license so their activities often remain a part of the informal sector (Racaud 2017). In major African cities, street trade is an important source of provision for poor urban families (Uwitije 2016). In 2016, there were over 10,000 street traders in Kisumu, a city with ca. 700,000 inhabitants (Racaud 2017).  

Passenger taxi services is another typical area where ''mzungu prices'' are charged. The ''mzungu price'' for a [[boda-boda]], a motorbike taxi popular in Kenya, is 3000 to 4000 Kenyan shillings (28 to 38 USD) more than the local price. Uber drivers are less common, so tourists normally use traditional taxis. Nonetheless, they use the Uber price, or a price suggested by local friends as the benchmark of a fair deal, making the ride-hailing applications a way to uncover and prevent overcharging. Before the expansion of these technologies into Kenya, ‘black’ taxis, run by drivers without taxi licenses, were prevalent. Nairobi had privately-owned minibuses called [[matatu]], which provided transportation for locals. However, public transport is hard for foreigners to use as there are no bus signs or official route maps. The expansion of ride-hailing applications in Nairobi has reduced the window of opportunity for ‘black’ taxi drivers to charge ''mzungu prices'' and has consequently reduced their earnings (Interview, 2019). New technologies indirectly act as a means of price regulation for tourists, with direct consequences on the local incomes.  

Charging ''mzungu prices'' results in tourist dissatisfaction. It can affect tourists’ willingness to travel to Kenya, as they prefer destinations where they will not be deceived by local people (Garg 2015). But ''mzungu'' prices also have positive impacts. Firstly, they contribute to poverty alleviation by providing families with extra income. Secondly, ''mzungu prices'' indirectly create new means of income for Kenyans. Foreigners will sometimes pay local workers to help them buy items in order to access local prices.  

In the absence of market regulation, the informal Kenyan traders base the prices of their ware on what they believe ''mzungu'' are willing to pay rather than on the value of the products. Street traders usually make only minimal profits and do not enjoy social protection. This incentivises them to establish a ''mzungu price''. One estimation suggested that street traders earned between $1.4 and $14.3 daily profits on average in Nairobi Central Business District in 2007 (Kamunyori 2007). The UN places the poverty line for sub-Saharan Africa at $1.9 per day (United Nations, n.d.). The broad range in daily profits depends on the trader's selling skills – the ability to set the highest viable ''mzungu price''.