Effect of Market Linkages on the Profitability of Smallholder Coffee Farming in Kisumu County
Abstract
Market linkages remain a major constraint to the profitability of smallholder coffee farming across East Africa, where farmers often rely on intermediaries, resulting in weak bargaining power and lower farm-gate incomes. In Kenya, these challenges are exacerbated by weak cooperative governance, inadequate market access, poor infrastructure, and limited institutional support. In Kisumu County, despite renewed interest in coffee production, empirical evidence on the contribution of market linkages to profitability remains scarce. This study examined the effect of market linkages on the profitability of smallholder coffee farming in Kisumu County. The study adopted a cross-sectional explanatory research design targeting 1,100 registered smallholder coffee farmers and cooperative leaders in Nyakach, Muhoroni, and Kisumu West sub-counties. A multistage probability sampling technique involving stratified and simple random sampling was employed. Cochran's formula with finite population correction produced a sample of 314 respondents. Primary data were collected using structured questionnaires and analysed using SPSS Version 29 through descriptive statistics, Pearson correlation, simple linear regression, and one-way ANOVA. The findings showed that respondents had moderately positive perceptions of market linkages (mean = 3.48–3.52), while profitability indicators recorded consistently high mean scores (3.97–4.00). Pearson correlation revealed a strong positive relationship between market linkages and profitability (r = 0.860, p < 0.001). Regression analysis further established that market linkages had a strong positive and statistically significant effect on profitability (β = 0.860, t = 25.10, p < 0.001), explaining 74% of the variation in profitability (R² = 0.740). ANOVA indicated no significant differences in profitability across the three sub-counties (F = 0.07, p = 0.933). The study concluded that strengthening market linkages through improved cooperative governance, enhanced market information, better infrastructure, and expanded access to competitive buyers can substantially improve the profitability of smallholder coffee farming in Kisumu County.