Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya

This study investigates the living income gap among coffee smallholders in central Kenya. It uses detailed survey data collected from coffee farmers organized in cooperatives and from coffee farm workers in Nyeri and Murang’a counties. Our analysis finds that coffee smallholders earn an average of o...

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Main Authors: Boukaka, Sedi Anne, Benfica, Rui
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2025
Subjects:
Online Access:https://hdl.handle.net/10568/175180
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author Boukaka, Sedi Anne
Benfica, Rui
author_browse Benfica, Rui
Boukaka, Sedi Anne
author_facet Boukaka, Sedi Anne
Benfica, Rui
author_sort Boukaka, Sedi Anne
collection Repository of Agricultural Research Outputs (CGSpace)
description This study investigates the living income gap among coffee smallholders in central Kenya. It uses detailed survey data collected from coffee farmers organized in cooperatives and from coffee farm workers in Nyeri and Murang’a counties. Our analysis finds that coffee smallholders earn an average of only 109 KSh per day, just 35 percent of the 312 KSh living income benchmark, with the gap being particularly severe in Murang’a and among those with smaller landholdings. Sensitivity analyses show that enhancing prices paid to farmers and improving yields can partially reduce the income shortfall. For instance, doubling both parameters, especially when coupled with a 50 percent increase in farmers’ non-coffee income, lowers the incidence of households below the benchmark from more than 90 percent to about 67 percent. Yet, even under these relatively optimal conditions, the persistence of a significant gap underscores deep structural constraints in the local economy. Policy recommendations therefore call for a multidimensional approach that improves production efficiency, improves and stabilizes prices, promotes income diversification, and strengthens institutional support.
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spelling CGSpace1751802025-11-06T07:06:26Z Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya Boukaka, Sedi Anne Benfica, Rui coffee diversification smallholders poverty productivity income distribution living standards This study investigates the living income gap among coffee smallholders in central Kenya. It uses detailed survey data collected from coffee farmers organized in cooperatives and from coffee farm workers in Nyeri and Murang’a counties. Our analysis finds that coffee smallholders earn an average of only 109 KSh per day, just 35 percent of the 312 KSh living income benchmark, with the gap being particularly severe in Murang’a and among those with smaller landholdings. Sensitivity analyses show that enhancing prices paid to farmers and improving yields can partially reduce the income shortfall. For instance, doubling both parameters, especially when coupled with a 50 percent increase in farmers’ non-coffee income, lowers the incidence of households below the benchmark from more than 90 percent to about 67 percent. Yet, even under these relatively optimal conditions, the persistence of a significant gap underscores deep structural constraints in the local economy. Policy recommendations therefore call for a multidimensional approach that improves production efficiency, improves and stabilizes prices, promotes income diversification, and strengthens institutional support. 2025-06-17 2025-06-18T18:54:17Z 2025-06-18T18:54:17Z Working Paper https://hdl.handle.net/10568/175180 en Open Access application/pdf International Food Policy Research Institute Boukaka, Sedi Anne; and Benfica, Rui. 2025. Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya. IFPRI Discussion Paper 2342. Washington, DC: International Food Policy Research Institute. https://hdl.handle.net/10568/175180
spellingShingle coffee
diversification
smallholders
poverty
productivity
income distribution
living standards
Boukaka, Sedi Anne
Benfica, Rui
Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title_full Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title_fullStr Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title_full_unstemmed Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title_short Brewing prosperity: An analysis of living income gaps among coffee smallholders in central Kenya
title_sort brewing prosperity an analysis of living income gaps among coffee smallholders in central kenya
topic coffee
diversification
smallholders
poverty
productivity
income distribution
living standards
url https://hdl.handle.net/10568/175180
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