Effects Of Khat Production On Rural Household’s Income In

This paper explores the factors that influence diversification into Khat production and its contribution to rural household’s income in Kenya. Using probability and non-probability sampling procedures, a sample of 125 households composed of both Khat producers and non producers was selected. Logit regression was used to estimate the factors that influence participation in Khat production while propensity Score Matching (PSM) was used to assess its contribution to rural household’s income. The factors that enhances participation are access to extension services, number of school going children, agricultural land size, household’s income and main occupation of the household head whereas the factors that hinder participation are age of the household head, distance from the main market and access to credit. Subsequently, Khat production positively contributes to the household’s income. Hence, as an alternative measure to boost the rural household’s income, Khat enterprise should be promoted