Effects of Market Costs Due to Rural Road Infrastructure on the Livelihood Outcomes of Small-Scale Farmers in Kenya

Abstract

This study examines the effects of market costs due to rural road infrastructure on the livelihood outcomes of small-scale farmers in Kenya. While road infrastructure is widely acknowledged as a catalyst for rural development, few studies have explicitly examined its effect on specific market-related costs, like product pricing and access to buyers, and how these translate into livelihood outcomes. Employing a pragmatic research philosophy, the study utilized a descriptive survey design targeting 395 households located within a one-kilometer radius of a rural road commissioned in the Upper Eastern region of Kenya between 2009-2013. Data were collected through structured questionnaires and analyzed using descriptive statistics and linear regression models. The findings revealed that most farmers experienced improved pricing of bananas post-road commissioning and increased access to buyers. However, regression analysis indicated that pricing of output products had no statistically significant effect on livelihood outcomes, suggesting that higher prices alone do not necessarily lead to improved household outcomes. In contrast, access to buyers had a significant positive relationship with livelihood outcomes, showing the significance of connectivity and market costs. The study concluded that the primary pathway through which rural road infrastructure affects livelihood outcomes is not necessarily by increasing product prices, but by expanding market access for buyers and reducing reliance on intermediaries. The study concluded that enhanced buyer access leads to improved household income and food security, two core components of rural livelihood outcomes. Based on these findings, the study recommends strategic investment in rural roads, support for direct-to-market platforms, and integrated infrastructure-agriculture programs to ensure sustainable livelihood improvements for smallholder farmers in Kenya and similar contexts.