Maize is the key staple food for the Kenyan population providing about 65% of staple calorie intake. Majority of the population both rural and urban populations and across income groups consider maize and maize meal as important items in their household food basket. Kenya produces enough maize to feed the population based on estimated per capita consumption but when other uses like seed, feed and manufacturing are considered the supply falls slightly short of demand. This shortfall is usually supplied by imports from both the East African Community and COMESA. In times of severe deficit the country waivers import duty to allow maize form the ROW. Several sources indicate that rice is becoming an important staple. This is attributed to changing lifestyles and growth of the middle income population. The national rice development strategy had projected that by 2016/17 the demand for rice will be about 350,000 MT. Available sources including government records show that demand has overshot that projection by almost 50 percent to 550,000 MT. The cost of production of maize and rice production has direct implications on national supply, access for consumption and household incomes. Additionally being members of both EAC and COMESA free trade area (FTA) requires that our farmers produce efficiently to be competitive regionally. It is in this context that Tegemeo Institute carries out annual cost of production assessments to continuously monitor trends and driving factors so as to inform policy on necessary interventions to reduce the cost of production.