Cooperative Societies and Sustainable Livelihoods of Small-Scale Farmers in Kenya

Abstract

Rural households’ main source of livelihood is livestock and crop production practices. Livelihood diversification strategies play a role in ensuring rural households achieve sustainable livelihoods. However, the different livelihood strategies adopted by such households remain under researched in Kenya as well determinants of such adoption. Thus, this paper investigates determinants of livelihood strategies in Kenya. We also examine effect of social connection and cooperatives in sustainable livelihood among rural households. We use secondary data from Kenya Integrated Budget and Household Survey of 2015/2016 and analyse data using multinomial logit regression model. Results found that, large proportion of households (53%) were solely engaged in agriculture for crop and livestock production while 22% of households practiced agriculture and non-farm activities. 17% of households practiced agriculture and off-farm while the 8% practiced a combination of agriculture, non-farm, and off-farm livelihood were main livelihood strategies in Kenya’s rural households. Cooperative membership influenced significantly choice of livelihood strategy among households and increased access to credit and income. Moreover, households leverage on social connection to get information on market, loans and decide on whether to join a cooperative or not. We conclude that availability of large sized-farms, male top household head, small size of livelihood, high household population, nearness to financial institution, access to transport facilities, training and higher adult literacy level were positive and significant determinants of choice of livelihood diversification strategy. The paper recommends policy design on strategies towards improving infrastructure in rural households, financial institutions, and market.