THE CONTRIBUTION OF RURAL NON-FARM ENTERPRISES ON RURAL LIVELIHOOD OUTCOMES: A CASE STUDY OF KIAMBU COUNTY, KENYA
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Date
2022-08-31
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Tangaza University College
Abstract
This study sought to investigate the contribution of rural non-farm enterprises (RNFEs) on
rural livelihood outcomes, with special reference to Kiambu County. The specific study
objectives entailed determining the different kinds of RNFEs in Kiambu County that
support agriculture and the relative success of each kind of these RNFEs; determining the
factors influencing the success of these RNFEs from an agricultural perspective;
determining the adequacy of support that government and other agencies are providing to
RNFEs; and finally discovering the additional financial, technical and other support that
RNFEs need to be more successful. A cross-sectional survey design was applied in this
research. Simple random sampling technique was relied on to sample successful diversified
small-medium enterprises from the 12 sub-counties that support agricultural activities in
Kiambu County. Thus, 157,704 which were all the registered micro, small, and medium
enterprises (MSMEs) business permit holders in Kiambu County was the total population
targeted by the research. The sample size of 398 respondents was apportioned according
to the population in the 12 sub-counties. Simple random sampling was used to select the
respondents. One-on-one interview schedules and questionnaire distribution using
KoBoToolbox was relied upon as the key instruments for collecting data. Questionnaires
were administered to help in data collection from selected diversified small-medium
enterprises, while the interview schedules came in handy in collecting key informants’
data. Quantitative and qualitative data analysis techniques were applied. Descriptive
statistics (percentages, frequencies, mean and standard deviation) was employed in
analysis of the quantitative data. Inferential statistics was used where regression and
correlation tests were applied to establish the relationship between the research variables.
The results indicated that the RNFEs contribution are categorized in three sectors that
comprise the primary sector which are natural resources, secondary sector which involves
manufacturing of goods, and the tertiary sector which makes work easier. These sectors
support the agricultural sector, either directly or indirectly. They contribute to livelihood
development by providing advice on best farm products and on-farm activities. The
transport enterprise facilitates transportation of farm products from one area to another,
while the construction enterprises avails equipment that make farm work easier. Through
this contribution, farmers are able to improve the agricultural sector and the rural livelihood
of the country. The results indicated that most of the rural non-farming widely covered
exchange of goods and services, agro-handling, extractive, craftsman and service
provision. The biggest challenge while engaging in the rural non-farm business was
accessing capital. Further, most rural areas do not have access to electricity and
communication networks. There was not enough support that is acquired for positive rural
livelihood outcomes. The study recommended on the need to study the effect of RNFEs on
Kenya’s agricultural economy as a whole which will highlight the differing effects of rural
non-farm enterprises (RNFEs) on the country’s agricultural productivity. This should be
extended out in different counties. Further, an effective strategy for secure livelihoods will
need to simultaneously address three components – employment opportunities, skills and
job security
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THE CONTRIBUTION OF RURAL NON-FARM ENTERPRISES ON RURAL LIVELIHOOD OUTCOMES, A CASE STUDY OF KIAMBU COUNTY, KENYA