www.cuts-grc.org Boosting Development in Kenya: Better Participation of Smallholders in

Agriculture has the potential for fueling Kenya’s development and pulling the over 15 million rural poor out of poverty. Yet, inconsistent production in recent years has led to food insecurity and increased levels of poverty. While a possible solution could lie in improving smallholders’ participation in agri-business, challenges remain for both farmers and private firms towards their fair and viable relationships. This policy brief discusses possible ways of achieving this, and provides recommendations on addressing the challenges towards a truly equitable agricultural development in Kenya. Key messages 1. The Kenyan private sector in agriculture has adapted fairly well to the changing global economy, often taking over former government prerogatives, and has in some cases increased livelihood opportunities for farmers by supporting their participation in export markets. 2. Despite new opportunities for their livelihoods, farmers are often exploited by middlemen and lack the capacity to bargain fair deals and to fully understand the implications of contracts they enter in. For this reason, belonging to strong producer groups should become the standard among farmers in order for them to enhance their bargaining capacity. 3. Huge investments in rural infrastructure are required for agri-businesses to be able to involve rural areas in value chains and export chains, prevent losses, increase food security and attract the necessary investment. Top priorities should include improving rural roads networks, water supply, and access to affordable electricity and irrigation