1.1 BACKGROUND INFORMATION
Price plays an important role in any economic system. It is the signal that
indicates how resources should be allocated, what and how much should be
produced. In competitive markets, producer and traders are assumed
in the bank lending behavior in commercial banks in Kenya.
2.5 Conceptual Framework.
This conceptual frameworks illustrates the linkage between the various study variables
considered in the study. It is modeled based on the theory of money supply. William
markets. The profit motive that drives market activity is therefore responsible for improvement
in the quality of life (Kimenyi M.S et al, 2001).
Figure 8: Market where the households sold their farm produce
Source: Field Survey May 2009
The sampled house
Moreover, the tendency to commit fraud is lower, as it seems plausible that people hesitate to
willingly cheat on those they have known for some time.
2.2 Studies done in the you know the relevant area, so state it
Banks perform the role of financial inte
In order to examine the food consumption patterns, the sampled households were asked to
determine how many days they consumed a series of food items in a week prior to data
collection and the sources of foods consumed. It was observed that diets in the st
Malakisi, Sit and Lwakhakha which originate from Mt Elgon. Their distribution is more or less
even. Generally, the rivers traverse the mountain slopes and this makes them fast flowing.
High rainfall ensures permanent of some of the springs and the main ri
LIST OF TABLES
Household heads Age, Land size/ Holding-21
The number of household family members-22
Number of months with sufficient water available for irrigation-25
Visits by Extension Agents-29
Relationship lending provides room for flexibility and discretion in contracts that allows for the
utilisation of subtle, non-contractible information, thereby facilitating implicit long-term binding.
It may include intensive covenants that enable a bette
policy is therefore an important tool for sustaining an improving economic status and the
quality of life of the people living in the study area.
It was also postulated that smallholder farmers are highly vulnerable to rising staple food prices.
Figure 10 indicates that about 38 % of the sampled households who sought credit used it for
subsistence purposes (food consumption), 22 % for medical, 11 % for school fees, 3 % for
starting business, about 2 % for purchase of agricultural land and inputs
Pagiola, S. (2005), Payments for environmental services in Costa Rica, paper presented at the ZEFCIFOR workshop: Payments for environmental services:Methods and design in developing and
developed countries, Titisee, Germany, June 15-18, 2005.
Figure 17: Total real household expenditure (Ksh)
Source: Field Survey May 2009
Figure 17, shows the computed household nominal consumption aggregate results which
categorized the households into three different poverty levels namely 68.9% food poor, 28.3
Figure 9 shows
that 78 % of the farmers sought credit from Microfinance Institutions,
commercial banks, farmers co-operative societies, Friends/Relatives, Organizations or Money
lenders, while 22 % never requested for credit facilities because of lack of
is popular because it is easy to understand and measure. But it does not indicate how poor the
For head count index, the value for ( ) is zero, hence the index can be determined by this
Where Np is the number of food poor and
Figure 1: Price trends for staple food commodities between 2000-2008
100 Market Price of Maize
Market Price of Beans
40 Market Price of Milk
Source: Ministry of Agriculture (2000-2008)
Market Price of Sorghum
Market Pric e of Finger Mil
persuasion, social pressure, or promised favors, all of which are factors closely linked to
integrated social systems and development processes, rather than to direct conservation.
2.2.5 Environmental taxes and subsidies
PES belong to the family of approa
HI: > 0
The solution for autocorrelation is to transform the original autoregressive error term into one
with a non-correlated error term so as to permit the use of the OLS procedures; let:
Yt = B1 + B2X2t + . +BkXkt + et, t=1T .eq. (3.7)
et et 1 Vt 0 1
loose grain was the most common meal among the households diets. The budget share for maize
loose grain was 39.3% of the mean household budget. One possible understanding of this
situation is that food was costly and incomes were low thus lowering the liv
General comments: Should re- work on the statement of the problem and the
sampling method to adhere to the scientific approach.
Verdict: The student to satisfy the supervisors before proceeding to collect and
analyse the data.
Student Name: Kipkoech Jer
Age of respondent (Yrs)
Land size /Holding (Acres)
Source: Field Survey, May 2009
The average age group shows most of the smallholder farmers are in the mid active and
Ram R (1986), "Government Size and Economic Growth: A New Framework and Some
Evidence from Cross-Section and Time-Series Data"; Am. Econ. Rev., 76(1): 191 - 203.
Reynolds, L.G. (ed) (1975).Agriculture in Development Theory Yale University press.
only. The study determines the effect of change in consumption of several staple foods as a result
of general price increase.
Barret et al. (2005) analyzed the relationship between overall household income and the
proportion of income earned in on-farm ac
Grayson J. A. (1975), Evaluation of the Contribution of Forestry to Economic Development.
Echevarra, M. (2002a), Financing watershed conservation: The FONAG water fund in Quito, Ecuador,
in S. Pagiola, J. Bishop, and N. Landell-Mills
Most farmers interviewed thought extension services were inadequate. Current extension agents/
staff are inadequate both in terms of the number, coverage, training, and professional level to
offer meaningful education and information. Any producer who see
influenced either positively or negatively the households decision making process. Most of the
smallholder farmers had their ages ranging from 17 and 85 years and majority of them educated
to primary school level. The study also revealed that the average
Ho: There is no statistically significant effect of some selected variables on the implementation
1.5 Justification of the study
Forest and watershed management in Kenya and world at large faces a serious challenge of
degradation and watershed degr
included tabulation, graphs and regression analysis. Three estimation techniques used were
nominal consumption aggregate, net consumption ratio and Multivariate Regression analysis.
The secondary data was organized and checked for obvious errors and corre
eliminating poverty using targeted transfers is simply the sum of all the poverty gaps in a
population; every gap is filled up to the poverty line.
The expression for this index is as shown below, where =1, N= 106
P () = 1/N