Effect of Rural Road Infrastructure on Livelihood Outcomes of Small-Scale Farmers: The Contribution of Non-Farm Enterprises

Abstract

This study looked at how Kenyan small-scale farmers' livelihood outcomes were affected by non-farm enterprises that resulted from the construction of rural road infrastructure. The study used a descriptive survey design to determine the association between rural road infrastructure and livelihood outcomes of small-scale farmers. It was based on the Sustainable Livelihood Framework and driven by a pragmatic research ethic. Further, the study employed cluster sampling to select households residing within a kilometer of the road corridor under study; thus, a sample of 395 houses was selected to provide data for the study. The two measures of the study's operationalization of non-farm enterprises were access to non-farm credit and income diversification. The majority of respondents reported greater engagement in non-farm economic activities after the rural road was constructed, indicating that the expansion of rural road infrastructure improved prospects for livelihood diversification. Farmers reported being involved in value-adding projects, small-scale trading, and dairy-related businesses. Through expanded outreach by lending organizations and financial institutions, improved road accessibility also made non-farm financing more accessible. The results also showed that access to economic opportunities, dietary diversity, and household income stability were all positively impacted by rural road infrastructure. However, because many households reported inadequate savings capacity and concerns about future livelihood security, the study also found that improvements in current economic conditions were not always accompanied by improved long-term financial resilience. According to regression analysis, small-scale farmers' livelihood outcomes were statistically significantly impacted by non-farm enterprises due to rural road infrastructure. However, the results also showed a negative relationship between household food security, non-farm credit availability, and income diversification, indicating a possible trade-off between non-farm activities and agricultural output. The study concluded that by encouraging non-farm enterprises, increasing market accessibility, and boosting small-scale farmers' financial inclusion, rural road infrastructure plays a crucial role in facilitating rural economic development. In order to support sustainable rural livelihoods, the study recommends making consistent investments in all-weather rural road infrastructure, growing rural non-farm enterprise support mechanisms, bolstering rural financial services, and developing policies that strike a balance between agricultural productivity and livelihood diversification.