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Market Participation among Poor Rural Households in Kenya

Author

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  • Olwande, John
  • Mathenge, Mary K.

Abstract

Kenya’s smallholder agriculture remains a major engine of rural growth and livelihood improvement, yet it is largely semi-subsistence. Therefore, any pathway that can lift large numbers of the rural poor out of poverty will require some form of transformation of smallholder agriculture into a more commercialized production system. This study used a three-year panel household data set collected in 2000, 2004 and 2007 and across nine agroecological zones of Kenya to assess the extent of market participation among poor smallholder farmers in Kenya with a view to identifying constraints to market participation among and potential market opportunities for the poor. Descriptive results reveal differences in market participation across selected commodity groups among poor and non-poor households, with poor households having generally lower market participation. Some characteristics of the poor households that could partly explain this low market participation include low literacy levels, small land sizes, low asset values, low access to credit and limited ability to produce surpluses for the market. In terms of factors that could enhance market participation for poor households, we find that land size and membership in farmer organization play significant roles. These results suggest that any hope for the poor to participate in markets and make any meaningful gains from agriculture lies in improving productivity of their land as well as improving their access to land. Increasing social capital through promotion of collective action among poor households can also be of great value in enhancing their access to markets.

Suggested Citation

  • Olwande, John & Mathenge, Mary K., 2012. "Market Participation among Poor Rural Households in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126711, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:126711
    DOI: 10.22004/ag.econ.126711
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    2. Olawuyi Seyi Olalekan & Balogun Taofeek Ayodeji, 2017. "The Endogeneity Effects of Conservation Agriculture Adoption on Smallholder Farmers' Food Security Status in Osun State, Nigeria," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 144-156.
    3. Dlamini, Lucinda Nosizo, 2019. "Determinants of commercial orientation and the level of market participation by women maize farmers in Eswatini," Research Theses 334763, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Bola Amoke Awotide & Aziz A. Karimov & Aliou Diagne, 2016. "Agricultural technology adoption, commercialization and smallholder rice farmers’ welfare in rural Nigeria," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-24, December.
    5. Hamdiyah Alhassan & Benjamin Musah Abu & Paul Kwame Nkegbe, 2020. "Access to Credit, Farm Productivity and Market Participation in Ghana: A Conditional Mixed Process Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(2), pages 226-246, May.
    6. Benjamin Musah Abu & Haruna Issahaku & Paul Kwame Nkegbe, 2016. "Farmgate versus market centre sales: a multi-crop approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-16, December.
    7. FE Mmbando & E Wale & LJS Baiyegunhi & MAG Darroch, 2016. "The Choice of Marketing Channel by Maize and Pigeonpea Smallholder Farmers: Evidence from the Northern and Eastern Zones of Tanzania," Agrekon, Taylor & Francis Journals, vol. 55(3), pages 254-277, July.
    8. Kiprotich Sigei, Geoffrey, 2014. "Determinants of Market Participation Among Small-Scale Pineapple Farmers in Kericho County, Kenya," Research Theses 243452, Collaborative Masters Program in Agricultural and Applied Economics.
    9. Sigei, Geoffrey & Bett, Hillary & Kibet, Lawrence, 2014. "Determinants of Market Participation among Small-scale Pineapple Farmers in Kericho County, Kenya," MPRA Paper 56149, University Library of Munich, Germany.
    10. Abu, Benjamin Musah & Domanban, Paul Bata & Haruna, Issahaku, 2017. "Microcredit Loan Repayment Default among Small Scale Enterprises: A Double Hurdle Approach," MPRA Paper 101576, University Library of Munich, Germany, revised 12 Mar 2017.

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