Many policy analysts were worried of the future of the horticultural industry. The only people seemed making money were those in big business-but some of them were suffering.
For the small scale farmers their only hope was to persevere because everything seemed against them; the economy, weather and cost of production...just to mention a few.
But, Kenyan farmers proved their ability to overcome tough economic crises in Kenya and around the world and retain the country’s position of the as a top agro-commodity producer.
Currently small farmers still generate over 70% of Kenya’s agricultural export earnings and there is no letting down of this arrangement.
This situation will remain for a long time and probably they will contribute more if they are empowered and they organize themselves in credible farmer groups and cooperatives.
TOUGH TIMES MAKE KENYAN FARMERS TOUGH.
Hard economic times of the 1990’s to 2002, difficult EUROGAP regulations and poor infrastructure threatened the position of Kenya as a leading Horticultural nation.
Furthermore; horticultural investors around Lake Naivasha region, were threatening to relocate their businesses to Ethiopia and bordering countries because of loses they caused by the aforementioned reasons.
Incentives for investors in adjacent countries seemed better; the tax rebates, huge discounts on land, economic growth....among others; conversely! Kenya’s economy was shrinking.
Conferences were organized by stakeholders; reasons identified slugging growth were, growing competition from other countries, infrastructural challenges, expensive requirements for certification and a lack of knowledge on good agricultural practice.
An improved economic environment ushered in by mpesa and unexpected economic, political and social reforms changed farmers’ fortunes and ability to be resilient.
THE ROLE OF MPESA: IN IMPROVING AGRICULTURAL PRODUCTIVITY.
Kenyans who owned a mobile phone were only a handful, in comparison with the general population making communication difficult.
This was soon to change, thanks to the reversal of year’s economic decline - a result of improved governance.
The increase of mobile phone penetration made it possible for small marginalized farmers previously written off; share market information on prices- an impossibility in the past.
A hard nut that beforehand disturbed policymakers was now partially cracked... thus; a glimmer of light could be seen.
Innovative thinking among GSM companies lead by Safaricom gave birth to mobile money transfer that was to revolutionize farming and the economy in general.
Farmers; most of them women... in far flung rural areas, could now receive money instantly from their husbands, other relatives and trading partners in cities and major market centers.
By 2007, over 10 million Kenyans owned a mobile phone and currently over 1 billion dollars is transacted in the mobile money platform; a great portion of the money is used in farming.
REGIME CHANGE: IT’S EFFECT ON AGRICULTURAL PRODUCTION.
The propulsion of the NARC government to power in 2002 beckoned economic prosperity and opening of political and social space in Kenya.
People became bolder in criticizing government; and a robust parliament put the executive, judiciary in check and instituted police reforms-minimizing the excesses of corruption.
This led to an increase in government revenue, thus of roads to various production regions could be rehabilitated; dilapidated roads were responsible for post harvest losses of farmers.
Also significant investment in airport infrastructure commenced, for example expansion of Jomo Kenyatta international airport to allow larger cargo aircraft to land and the upgrading of Kisumu airport to international status.
The road network in the country is currently being transformed; it’s said it will be the best and most extensive in sub Saharan Africa.
The completion of Thika super highway, transport corridors and bypasses will make it possible to get to Jomo Kenyatta international airport and the city centre faster than before.
The access to credit has improved with the setting up of the youth enterprise fund, women enterprise fund and the current flexibility of commercial banks in availing credit to farmers.
The current major challenge is finding ways of reducing production costs. This role can only be played effectively by the farmers with assistance from other stakeholders.
This will happen when farmers make an in-depth analysis on the suitability of various enterprises in his/her farm and forming cooperative societies that cater for their interests.
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