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2WT business model appraisal in FACASI Project areas-Kenya: synthesis report on the adoption and impact of 2WT business models on farm households in Kenya

Author: Mwehe, M
Author: Kahan, D.G.
Year: 2017
Format: PDF
Language: English
Publisher: CIMMYT
Copyright: CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purpose.
Type: Report
Place of Publication: Kenya
Pages: 54 pages
Description: In many parts of Kenya, small scale farms remain at the center of agriculture and rural development. However, productivity of these farms is dismally low leading to high level of food insecurity. One of the main causes for the low level of agricultural productivity is the lack of appropriate agricultural machines and equipment that cater to and suit the requirements of small scale farms. CIMMYT through FACASI funded a programme in Kenya to disseminate 2WT based agricultural mechanization technologies and other small farm machinery technologies to smallholder farmers including ploughs, planters, trailers, Sheller, threshers among others. This synthesis report was funded by FACASI and focused on the assessment of the Performance of 2WT-Business Models and the benefits and impact the 2WTs has brought to the Service providers and users of 2WT mechanization hire service. In Kenya FACASI project operates in two regions; Laikpia and Bungoma counties, Study objectives: The main objective of this Business Model Analysis research was to assess the performance of 2WT-Business Models in Kenya. The study also aimed at assessing the adoption and scaling up of 2WT mechanization by small scale holders farmers in Laikipia and Bungoma counties in Kenya. The specific objectives were to; i) Assess the performance of the 2WT hire service business models, ii) Assess the benefits and impact to the users of 2WT mechanization hire service, iii) Assess the critical success factors for improvement of the performance business models and iv) to examine the Agribusiness Hub model performance and its impact on farm household utilizing the hire services. Methodology: The study was designed to follow qualitative and quantitative methodologies, employing a case study approach to analyses selected business models. In undertaking this study, 2WT business models were first selected. A detailed analysis of various variable including; resources and activities, key partners and collaboration, business organization, business performance, offering, value proposition, flow of services and distribution, utilization of good and services, customers, sustainability, business environment, business growth and strategy and critical success factors were investigated. Data collection entailed field visits and household interviews using two data collection instruments. During field visits, key informant interviews were conducted with 2WT individual owners, 2WT hire services providers, users of 2WT hire service. Key findings: This study has revealed that the market performance for 2WT BM in Kenya is low. Majority of SPs offered very few services that were demanded by users.. Most SPs were constrained in mechanized service diversification by lack of 2WT equipment’s and accessories like Shellers, trailers etc. that limited greatly the range of services they could offer to their customers. For 2WT business model to be profitable, it is recommended for SPs to own more than one 2WT accessories and to bundle their services. On the other hand, mechanization levels among smallholder farmers are particularly low in Bungoma and Laikipia regions. While adoption and use of 2WT in Kenya is still low, the demand is slowly growing. The increasing demand is attributed to the high land fragmentation that are making operations of 4WT within the small sized land holding uneconomical. In general across the country, the niche for service providers of 2WTs based mechanization is becoming attractive owing to the increasing land fragmentation, the high operational and maintenance cost of alternative mechanization like animal draught and 4WTs and the diminishing human drudgery.
Country of Focus: KENYA

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