The influence of large-scale investment in agricultural land on household food security in Nanyuki area of Kenya

Abstract

Over the past decade, agribusiness, investment funds and government agencies have shown a growing interest in the acquisition of large-scale agricultural land in developing countries. Much of the interest has been linked to global food price and energy crisis of 2007/2008, driven by various factors such as food security concerns, biofuel demand, carbon markets, water and financial speculation. Despite much research on these acquisitions, empirical evidence on the effects of large-scale agricultural investments on household food security appears to be limited in Africa.

This dissertation explores the influence of large-scale investments in agricultural land on household food security in the rural Nanyuki area of Kenya as part of the African Food, Agriculture, Land and Natural Resources Dynamics (AFGROLAND) project. The sample of 545 households was classified into households (i) in which at least one member was employed or (ii) contracted to the agribusiness, (iii) households in the same area that were neither employees nor contractors (non-engaged) and (iv) counterfactual households from a neighbouring community. The study used food security measures to assess sampled household food security levels. Principal Component Analysis explored the effect of large-scale agricultural investments on food consumption patterns and assessed the adoption of coping strategies by households.

The results revealed that payment received through contract farming strengthened household food security, increased asset accumulation and improved dietary diversity among contract households. Households with an employed member were better off with regards to diet quality and asset ownership. However, they occasionally adopted coping strategies such as skip eating days that are likely to compromise their long-term food consumption. Smaller land sizes were noticed among non-engaged households who had more difficulty in coping with food shortages. Counterfactual households were better off in terms of dietary quality, resilience but adopted some severe coping strategies. Female-headed households were affected by a lack of employment opportunities in the factual zone of the large-scale investments. The study concluded that large-scale agricultural investments might improve food security through contract farming schemes. However, large-scale agricultural investments should be closely monitored to ensure sustainable employment, particularly for women. Policymakers should consider large-scale agricultural investments aligned with local objectives of improving food security for rural households.