| dc.description.abstract | The horticultural sub-sector in Kenya has been characterized by sustained growth over
the years. However there has been slow growth rate in horticultural exports over the last
decade. The horticultural exports are the major exports from the agricultural sector
alongside tea and coffee. The main objective of this study was to establish the factors that
influence the horticultural exports in Kenya with a view of recommending policies that
can be adopted to improve the horticultural subsector. Secondary time series data for
horticultural exports, real exchange rate, agricultural GDP, real interest rate and foreign
income for a period of 30 years (1984-2014) was used in the analysis. The data was
collected from the various issues of Economic Survey and Statistical Abstract of KNBS,
various issues of Statistical Bulletin of CBK, HCDA and the World Bank development
indicators publications. Five major importers of the Kenya’s horticultural produce (UK,
Germany, Netherlands, France and Belgium) were selected. By use of cointegration
analysis, an error correction model was adopted in the analysis. The results of the
analysis indicated that real exchange rate, agricultural GDP and real interest rate are
significant in influencing the horticultural exports. However the coefficient of the foreign
income was not significant. Recommendations made is that government policies should
be aimed at; increasing agricultural GDP, maintaining the exchange rate at a level that is
competitive for horticultural exports and reducing the interest rate in the economy. | en_US |
