FACTORS INFLUENCING COMMERCIALIZATION OF SMALLHOLDER FARMING IN KENYA
Abstract
This study looked at the factors determining commercialization of smallholder farming in Kenya. The household characteristics were captured by gender of household head, household labour size, age of household head and the education level of household head. On the other hand, farm level characteristics were captured by the size of the farm and application of irrigation. The intervening variables in the study were the access to transport, income from non – farm activities and income from livestock sales. The study used cross-sectional data based on farm household surveyed in 2011 by the Kenya Agricultural Productivity and Agribusiness Program. Probit model was used to model the empirical analysis. The results show that the likelihood of small holder commercialisation statistically increases with the application of irrigation, increase in the household labour force and increase in the land size under farming. On the control variables, access to agricultural credit, access to transport facilities, use of improved seeds, presence of non-farm income, use of extension services were all found to positively and significantly influence commercialisation of small holder farming in Kenya. Based on the findings of the study, the study recommends on the need by both the national and the county governments to invest in empowering the small holder farmers through provision of irrigation infrastructure. Further given that the size of the land is core in influencing commercialisation of small holder farming in Kenya, there is need for relooking at the land tenure system with a view of having putting a cap on the minimum land acreage to prevent high level of land fragmentation which would adversely affect production and ultimately commercialization of small holder farming. The results show that the likelihood of small holder commercialisation statistically increases with the use of irrigation, access to agricultural credit, access to transport facilities, use of improved seeds, presence of non-farm income, use of extension services, size of the labour force and the farm size. The positive association of farm income and market participation suggests that farm and non-farm activities are complementary. This may point to existence of household credit constraints with off-farm income serving to relieve this constraint. Being female and age is associated with a negative effect on commercialization. These findings are supportive of the current national policy to expand irrigation investments in Kenya, improve the rural infrastructure especially through the County governments and calls for development of a coherent credit policy for small holder farmers
Keyword: Household Characteristics, Farm Level Characteristics, Transport, Income from Non-Farm Activities, Income from Livestock Sales
CITATION: Waweru, O. W., & Olweny, T. (2023). Factors influencing commercialization of smallholder farming in Kenya. The Strategic Journal of Business & Change Management, 10 (2), 1227 – 1248.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2660
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