Discussion Paper No. 204 of 2018 on Determinants and Welfare Effects of Smallholder Farmers' Commercialization in Kenya

Abstract

Transforming smallholder agriculture from subsistence production to commercialized agriculture, remain a key policy concern for developing countries such as Kenya. Although great efforts have been made to promote commercialization, smallholder farming in the country is dominated by subsistence with little participation in the market system. This study aimed at investigating the factors that influence commercialization and the level of commercialization as well as the effect of smallholder farmers’ commercialization on smallholder farmers’ welfare in Kenya. The study utilized national cross section data collected by the Agricultural Sector Development Support Programme (ASDSP) on agricultural households in the country and analysis was performed using a two-stage selectivity model...