Agriculture and Micro-enterprise program
About
Us
Some 80 percent of the Kenyan population lives in rural areas,
and 75 percent are somehow involved in agriculture. Kenya’s
economy is therefore heavily dependent on its agricultural productivity.
Over the past decade, however, agricultural productivity has declined
and poverty has increased. Over the same period, drought has plagued
Kenya on an increasingly frequent basis, affecting “traditionally”
drought-prone pastoral areas as well as many other agro-ecological
zones (AEZs) of the country.
While poverty is found in both urban and rural areas, 75 percent
of the poor are in rural areas. USAID/Kenya’s Agriculture
and Micro-enterprise program is therefore focusing on increasing
incomes of rural households in selected high and medium potential
and arid and semi-arid lands over its current 5 year strategy (2001-2005).
Most of these areas already rely on a combination of on-and off-farm
activities. The program uses a market driven and private sector
oriented approach to achieve its objective. The specific program
descriptions are as follows:
Agriculture
The
agriculture component is designed to cultivate more efficient market-driven
production of maize, dairy and horticultural commodities with the
following results and activities in mind:
a) Increased agricultural productivity: i) stakeholder policy
dialogues, and policy research on such areas as costs of production
and seed policy; ii) research, development and transfer of improved
agricultural technologies including support for improved technologies
in maize, dairy, horticultural varieties; also biotechnology, biosafety
and appropriate technologies; iii) participation of the private
sector and NGOs in service delivery; and iv) conservation of sustainable
natural resources for agriculture.
b) Increased agricultural trade: i) support policy reforms
that promote trade and competition; ii) improve marketing efficiencies;
and iii) facilitate agricultural trade through improved service
delivery (market information, standards and grades).
c) Increased effectiveness of smallholder organizations: i)
facilitate an enabling policy and regulatory environment for farmer
business groups to pursue their business interests; and ii) strengthen
ability of members of smallholder business organizations to manage
their business interests.
In arid and semi arid areas, support is provided to establish drought
coping mechanisms for vulnerable communities in these regions and
assist them shift out of dependence on relief.
Micro-enterprise
The microenterprise component aims at increasing micro and small
enterprises’ (MSEs) access to financial and non-financial
business support services by tackling problems that hamper
their growth in Kenya. Key problems addressed and mitigation interventions
include:
i.) Access to financial services – strengthen the microfinance
sector by facilitating formulation of appropriate policy; establishing
regulatory and supervision framework; building industry infrastructure,
like a credit reference bureau, a performance standards and reporting
system, a training and certification program; supporting leverage
of commercial sources of funding and private investment for MFIs;
and developing new products and delivery systems especially for
the underserved rural-based MSEs.
ii.) Access to business development services – strengthen
service providers to sustainably provide technical and business
management skills, improved technology, market intelligence and
linkages, and create awareness of the value and existence of business
development service among MSEs.
iii.) Policy and regulatory environment - assist the government
to operationalize recommended policy changes, strengthen the capacity
of government officers responsible for policy implementation through
training, and strengthen the ability of microenterprise associations
and pressure groups to negotiate with policy makers.
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