Impacts of USAID/Kenya supported Agricultural Productivity Interventions on Household Income and Poverty Reduction

Abstract

Executive Summary

Agriculture is receiving increased importance in the development agenda following the food price and financial challenges of 2008 and the renewed emphasis on Millennium Development Goal (MDG) targets of halving poverty and hunger by 2015. In June 2009, President Obama committed the United States Government (USG) to increasing support to achieve MDG targets in regions with significant poverty and hunger. Africa and African agriculture are emphasized because of Africa’s high rural poverty rates. Meeting MDG targets for sub-Saharan Africa requires significantly increased resources. Commensurate with these funding levels are increased needs to quantify and document the impact of USG-funded interventions on poverty reduction. This paper presents the results of an impact assessment of three USAID/Kenya supported interventions to reduce poverty in Africa: the Kenya Dairy Development Program (KDDP), Kenya Maize Development Program (KMDP) and Kenya Horticultural Development Program (KHDP). The analysis is based on Tegemeo Institute’s longitudinal data set specifically capturing the impact of USAID programs. The sample was divided into three farm household groups (HHGs): those participating in programs (“direct treatment group”); those not directly participating in programs but residing in villages where programs were operating (“indirect treatment group”) and those households residing in villages where no USAID programs were operating (“control group”) (Figure ES). 61.9% 60.8% 56.3% 74.2% 70.8% 63.6% 77.6% 76.6% 76.9% 0.0% 20.0% 40.0% 60.0% 80.0% Poverty Rate Treatment: Direct Treatment: Indirect Control 2004 2006 2008 Figure ES. Poverty Rates in Treatment and Control Groups, 2004, 2006 and 2008. Source: authors’ calculations from USAID/Tegemeo data. Between 2004 and 2008, net poverty in the direct treatment group decreased by 4.9 percentage points, a decline attributable to the USAID programs. Among indirect beneficiaries of the programs, a net poverty rate reduction of 9.9 points is attributable to the USAID/Kenya supported interventions. Between 2006 and 2008, poverty among female-headed households potentially benefitting from the USAID programs declined from 76% to 67%.