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Evaluating the impact of agribusiness support services on productivity and income among smallholder farmers in rural Kenya: insights from a multinomial endogenous switching regression analysis

Year: 2025

Type: article

Abstract: Agribusiness support services (ASS) are essential for enhancing the productivity and income of smallholder dairy farmers in Kenya. Despite their importance, many farmers only utilize a limited combination of available ASS, such as production (P), financial (F), cooperative (C), and business plan training (B) services, rather than leveraging the full suite of support. This study examined the impact of different ASS combinations on the productivity and income of smallholder dairy agripreneurs in Murang’a County, Kenya, using cross-sectional data from 682 dairy farmers and a multinomial endogenous switching regression model. The results reveal that, combining services like P 1 F 1 B 1 C 1 (production, financial, business plan training, and cooperative support) results in a 7.9-unit increase in milk productivity for users. Income gains were also notable for combinations like P 0 F 1 B 0 C 0 (financial support only) and P 1 F 1 B 1 C 0 (production, financial, and business plan training), with income increases of KES 12,184.1 and KES 26,543 for users, respectively. Non-users adopting these services could see potential income gains of KES 1,846.5 and KES 105,150.8, respectively. The study recommends expanding access to affordable credit, integrating financial support with business management training, and improving cooperative and production support programs. Enhancing infrastructure to improve market access and value chain development is also crucial. Tailored interventions for vulnerable smallholder farmers and continuous monitoring of ASS programs are necessary to ensure effective resource allocation and maximize benefits for smallholder dairy farmers.

Source: Discover Agriculture

DOI: 10.1007/s44279-025-00195-7

Author: Dickson Okello

Institution: Egerton University

Language: English

Topic: Agricultural Innovations and Practices

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Decent work and economic growth, Zero hunger, No poverty, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,340