| dc.description.abstract | Agriculture is the most important sector in the Kenyan economy given its
contribution to employment, foreign exchange, food, and its linkages with other
sectors of the economy. Indeed, the sector’s performance directly mirrors that of
the overall economy. However, in last ten years or so, the performance of the
sector has been steadily declining, culminating in a negative growth rate in
2000. With over 80 per cent of the Kenyan population (the majority of whom
are poor) living in the rural areas, the poor performance of the sector has had
serious implications on poverty and living standards of the people. Declining
agricultural growth has been identified as a major determinant of poverty in
the country. Reversing this trend is no doubt an immediate development
challenge for Kenya. Addressing this challenge requires knowledge of what drives
agricultural growth and productivity.
This study explores the sources and determinants of agricultural growth and
productivity in Kenya for the period 1965-2001. The ‘growth accounting’
approach is used to identify the sources of growth, while econometric techniques
are used to assess the determinants. The study utilized secondary information
from the World Bank Africa Database and the KIPPRA Agricultural Data
Compendium. The study establishes that most of the agricultural growth in
Kenya is attributable to factor inputs – labor, land and capital. Growth in
output not attributed to factor inputs or total factor productivity has in the
entire period accounted for only 10 per cent of growth. Labor has been the
most important source of growth and accounted for about 48 per cent of the
total growth. Land is also a very important determinant of agricultural growth
and productivity. The study has also established that the Kenya’s trade policy,
climate, and government expenditure on agriculture are important determinants
of agricultural total factor productivity growth. | en |
