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Impacts of USAID-Funded Programs on Smallholder Income in Kenya

Impacts of USAID-Funded Programs on Smallholder Income in Kenya

 

 

 

Author(s):  M. Smale, M. K. Mathenge, T.S. Jayne, E. Magalhaes, J. Olwande, L. Kirimi, M. Kamau, and J. Githuku
Introduction

Over the last decade, the United States Agency for International Development has funded programs to promote maize, dairy and horticulture enterprises, with the objective of increasing household income, among smallholder farmers in Kenya. This study applied econometric and statistical methods on household survey data to provide evidence of the quantitative impact of the three programs on the income of program participants. Results reveal strong statistical evidence to suggest that from 2004 to 2010, the programs positively affected smallholder income, when compared to non-participants in the program areas, and to a broader sample of households some of which are outside the program areas. Small sample sizes weaken the statistical reliability of tests on impacts of individual programs, although the signs of the impacts are positive among all three. As Kenya’s agricultural economy diversifies and develops, we intend to further investigate the finding that programs enhance household capacity to earn income from non-farm activities.

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