Household livelihood diversification and gender: Panel evidence from rural Kenya: Fid-Bau Portal

Household livelihood diversification and gender: Panel evidence from rural Kenya

Alobo Loison, Sarah

Abstract There are high hopes that livelihood diversification could contribute to goals of poverty reduction in Sub-Saharan Africa (SSA). This study uses household panel data collected in 2008 and 2013, combined with a mixed methodology to examine the regional and gender disparities, as well as the determinants of change in livelihood diversification in the agricultural regions of Nyeri and Kakamega in rural Kenya. The study period was characterised by important structural changes in the composition and sources of household cash incomes, with farm incomes declining significantly, pushing female headed households into absolute poverty. Whereas the contribution of nonfarm income to total household cash incomes increased significantly, especially in Kakamega. The econometric results show that there is a positive and significant relationship between changes in household asset wealth and changes in livelihood diversification at the regional level, implying that diversification is mainly an accumulation strategy for wealthier farm households. In addition, changes in livelihood diversification are significantly correlated with the initial level of diversification, household demographic characteristics such as age, gender, education level, and hiring labour. Furthermore, increased access to agricultural input credit and more secure land rights seem to promote specialisation in farming rather than diversification. Whereas poverty has a negative and significant effect on change in livelihood diversification. The results have implications for development policy in rural Kenya – highlighting the need to harness the positive aspects of livelihood diversification for poverty reduction, while reducing the negative effects on poorer households by reducing asset entry barriers into remunerative activities.

Highlights • Regional and gender patterns, and determinants of change in livelihood diversification are studied. • Panel data from 239 rural Kenyan households, obtained from two regions in 2008 and 2013. • Significant gender differences in access to livelihood diversification. • Distress/survival diversification increased in the less dynamic agricultural region. • Increase in household asset wealth promoted livelihood diversification at the regional level.