Information Technology-Based Platforms Adoption on Farmgate Prices and Production among Vegetable Farmers in Selected Counties in Kenya
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Date
2025-12
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Kenyatta University
Abstract
Information Communication Technology platforms, such as mobile apps and online
marketplaces, play a crucial role in improving agricultural production and marketing of produce.
According to the basic Agricultural survey by the Kenya National Bureau of Statistics,
approximately 45% of smallholder farmers in Kenya used Information Communication
Technology tools in agriculture in 2022, reflecting an 8% increase from previous years. This
growth is attributed to government initiatives to promote technology across sectors and the
emergence of new platform providers fostering healthy competition. However, despite this
growth, the impact of these platforms on vegetable production levels and prices remains
underexplored. This study examined how adopting Information Communication Technology
platforms affects prices and production among vegetable farmers in the counties of Kiambu,
Makueni, and Nakuru in Kenya. The analysis used panel data with 7,500 observations collected
from 3,750 vegetable farmers across two seasons: 2023 (before intervention) and 2024 (after
intervention). Key variables included farmgate prices, production quantities, farm size, education
level, input costs, market distance, and access to government subsidies. Farmers were divided
into treatment and control groups based on platform usage. The study applied a Difference-in
Differences approach, revealing that adopting information communication technology was
significantly linked to higher farmgate prices. Regression analysis showed that using ICT-based
platforms increased farmgate prices by Ksh.6.40 per kilogram. The Difference-in-Differences
results also confirmed a causal effect, with the Average Treatment Effect on the Treated showing
a statistically significant increase of KSh.3.20. Regarding production levels, findings indicated
that platform adoption led to a notable increase in output, with adopters producing 675 kilograms
more than non-adopters. The Average Treatment Effect on the Treated from Difference-in
Differences analysis supported this, showing a statistically significant production rise of 410
kilograms attributable to adoption at the 95% confidence level. The study concludes that
adopting farm-based information technology platforms has a positive and significant impact on
both farmgate prices and production levels among vegetable farmers. These findings provide
empirical support for the hypothesis that digital tools improve farmers' market engagement and
production efficiency. The policy implications from the study, from the evidence that information
communication technology based- platforms positively affect both farmgate prices and
production, suggest that agricultural digitalization can play a central role in national strategies to
improve rural incomes and food security and policymakers should recognize that without a
foundational understanding of how to interpret and apply digital information, the benefits of
information communication technology platforms tools may not be fully realized
Description
A Research Project Submitted to the Department of Econometrics and Statistics in the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of Master of Economics (Econometrics) Degree of Kenyatta University. December 2025
supervisor
Aflonia Mbuthia