The influence of rural logistics and rural transport costs on farm income and poverty in Kenya: the case of Kisumu and Nyandarua Districts, Kenya

Type Journal Article - World Bank Report
Title The influence of rural logistics and rural transport costs on farm income and poverty in Kenya: the case of Kisumu and Nyandarua Districts, Kenya
Author(s)
Publication (Day/Month/Year) 2004
URL http://siteresources.worldbank.org/INTTLF/Resources/Kenya_Rural_Logitcis_Report.pdf
Abstract
Numerous models of development have generated explanations of growth and
development that imply a strategic but often hidden role of infrastructure. Urban and rural
growth rates are generally dependent on the physical transport and communication
linkages. The ability of infrastructure to reduce the cost of marketing agricultural
products has significant implications, especially in Africa.
Lack of infrastructure facilities is the principal source of market fragmentation and
inefficiency in the transmission of price signals. As such, availability of infrastructure
facilities will enhance diffusion of agricultural technologies and facilitate accessibility to
farm inputs and credit to the rural farmers because agricultural service providers tend to
frequent areas with adequate infrastructure.
According to Karugia et al (2004), substantial infrastructural, institutional, and policy
constraints hinder the exploitation of market opportunities. These constraints undermine
the development of food marketing system and lead to high marketing costs, barriers to
entry and expansion by traders. The study recommended that the central and local
governments should play a greater role in improving marketing infrastructure.

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