The relationship between market centres and the growth of rural economies: case study of Kabondo Division/Rachuonyo District, Kenya

Abstract

Rural-Urban linkages has previously been handled in different perspectives. In this study, we examined linkages on the basis of the relationship between crop production and market centres in the growth of rural economies, with a view of describing models that could assist in enhancing the growth of rural and hence, national economies. A number of policy strategies geared towards rural development have previously been proposed in Kenya. However, there has been no significant effect on the improvement of development indication on the ground. We suspected that the failure emanates from inadequate knowledge about rural farmers and the environment in which they operate. Our academic problem singled out poor crop husbandry practices as the main cause of poverty in the rural areas. On the other hand, our research problem identified market failure as a major factor behind low levels of development in the rural economies. We analyzed production process and the interaction between agricultural and business sectors using two sampled crops (maize and beans) that are grown by the majority of households in Kabondo division. Various methods of analysis were used particularly, simplex method of linear programming, and sensitivity analysis, used to examine the level of production and expected change in the use of resources in production process. Input-output technique was used to analyze the existing relationship between business and agricultural sectors. We used Lorenz-curve method of analysis to assess income distribution in the division. Statistical measures of central tendency such as the use of median, mean and range are also employed in the text We established that the current production level in Kabondo is not optimal, there is underutilization of factors of production particularly, land and labour. The farmers are facing a major difficulty in accessing capital input. Money income earned from the sale of farm produce is low, as the produce is sold raw without adding value. The business community has failed to stimulate market demand, which in turn contributes to the deteriorating performance of the agricultural sector.