Drivers of Participation in Smallholders Banana Contract Farming in Kenya
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Date
2024-06
Journal Title
Journal ISSN
Volume Title
Publisher
African Journal of Economic Review
Abstract
Smallholder banana farmers in Kenya face declining farm productivity and low market prices due
to a fragmented, broker-dominated market. While the Kenya National Banana Development
Strategy promotes contract farming as a potential solution, farmer participation remains
surprisingly low. This study investigates the factors influencing smallholder participation in
banana contract farming in Kenya. Employing a heteroskedastic probit model with robust standard
errors to assess the drivers of participation in smallholder banana contract farming in Kenya, we
identify key drivers such as household head education, credit access, cooperative membership,
irrigation, and banana farm size. Based on these findings, we recommend policy interventions
focusing on: Enhanced farmer extension services and technical assistance, facilitated credit
access, cooperative development, investment in irrigation, and incentives for contract farming
companies. By addressing these critical factors, policymakers can encourage wider smallholder
participation in banana contract farming, unlocking its potential to improve livelihoods and
contribute to sustainable agricultural development in Keny
Description
Research Article
Keywords
Citation
Murigi, M., Muchai, D. N., & Ogada, M. J. (2024). Drivers of Participation in Smallholders Banana Contract Farming in Kenya. African Journal of Economic Review, 12(2), 101–119.