Mitigation Intermediary Transactions within Kenya’s Agricultural Supply Chain

Kenya’s economy is composed of agriculture accounting for nearly a quarter of Kenya’s GDP. Here, smallholder farmers, those who cultivate under four acres of land, are responsible for 80 percent of the country’s food production [1]. However, these farmers only earn an average of ${\$}$591.30 annually [19]. Limitations include climate change, limited information communication technologies (ICTs), failed agricultural extension services, and a supply chain fragmented by intermediary middlemen. Of these challenges, middlemen are the greatest limiting factor of economic growth for smallholder farms. Using qualitative conversations, we sought to understand the necessity of middlemen in this economy and examine existing supply chain models and technological enhancements from ICTs. We then explore possibilities to reduce the intermediary costs incurred by middlemen in Kenya’s agricultural supply chain. Ultimately, we have concluded that through the addition of technological advancements used in conjunction with delivery type services can mitigate transaction costs of middlemen. Each supply chain solution is a viable improvement for small-scale farmers’ profit margins yet does not achieve the goal of middlemen removal. Also, each solution is geographically dependent and can only be implemented with support from ICTs streamlining real time and transparent data regarding smallholder production, market demand, prices, and payments.