APOLLO UMA2026-06-082026-06-082024-02http://41.89.96.81:4000/handle/123456789/3802Rice plays a critical role in the socio-economic development of the Kenyan economy. Despite this acknowledgment, the capacity of over 256 rice mills in Kenya is underutilized. The main objective of this study was to determine the effect of paddy sourcing methods on the overall volumes of rice milled by small and medium-scale millers. Specifically, it focused on identifying paddy sourcing methods, determining the level of usage of paddy sourcing methods, factors that determine choice of paddy sourcing methods and effects of the sourcing methods on the volume of rice milled by small and medium scale millers. The study adopted a multistage sampling technique and used semi-structured questionnaires to collect qualitative and quantitative data using face-to-face interviews. Data was collected from 90 small and 70 medium-scale rice millers giving a total of 160 millers in Mwea, Kirinyaga county. Descriptive statistics, multivariate probit analysis, and a two-stage Instrumental Variables approach were used in data analysis. Results indicate that the methods used are direct sourcing from individual farmers (88%), individual farmers bringing paddy to the miller (83.9%), buying from traders (76.3%), and sourcing using agents (68.7%). The most frequently used paddy sourcing method is a combination of direct sourcing from farmers and individual farmers bringing paddy to the miller at 51.9%. Factors that influenced the utilization of paddy sourcing methods included the millers’ age, ownership of transport means, price of paddy, commission cost, gender, marital status, working experience, transport cost, storage capacity and degree of competition. Approximately 97.8% of rice millers use a combination of paddy sourcing methods while 2.2% use a single paddy sourcing method. Finally, the use of a combination of buying from traders, direct sourcing from individual farmers and individual farmers bringing paddy to the miller (B1D1I1A0) has a significant effect on the volume of paddy sourced and milled. Therefore, the study recommends policy initiatives aimed at improving transport infrastructure and enhancing communication between stakeholders within the paddy supply chain that can promote the efficiency and sustainability of paddy-sourcing methods within the rice-growing regions. Initiatives aimed at promoting transparency in the paddy pricing system can strengthen the relationship between millers and farmers thus fostering a mutually beneficial agricultural system. Disseminating up-to-date market information, can guide rice millers’ decision-making and help them adjust their strategies and ensure competitive edge in the industry.en