Factors Influencing Agripreneurs’ Investment Decision And Level In Clean Seed Potato Enterprises In The Highlands Of Kenya

Abstract

High quality seed potato (Solanum tuberosum L.) supply has failed to meet the growing demand estimated at 250,000 metric tonnes from 161,000 ha of ware potato for cultivation by 600,000-800,000 small-scale farmers in Kenya. Increased investments by private seed potato multipliers could alleviate the shortage of seed potato by enhancing availability and accessibility to quality seed, and bridging the supply that currently meets less than 5% of the demand. The objective of this study was to investigate factors that influence agripreneurs’ investment decisions and level of investment in clean seed potato enterprise in the highlands of the Rift Valley, Kenya. The study was conducted through a cross-sectional survey of 380 agripreneurs. The Double hurdle (Craggit) model analysis revealed that training, frequency of extension services, family history in seed potato business, years spent in school and selling price, significantly (P<.05) influenced the probability of agripreneurs’ decision to invest in clean seed potato enterprises in the highlands of Kenya. Initial land size put under seed potato production at the commencement of the enterprise, higher annual household income, number of cropping seasons, total land under seed potato and group membership fee also significantly (P<.05) influenced the decision and level of investment in clean seed potato enterprise.