DOI: 10.36347/sjebm.2016.v03i09.007

Pages: 481-485

Agriculture is the most important sector in Kenya. The main economic importance of crop diversification is contribution to living standards and risk management. Crop farming in Mathira East District is characterized by different forms of diversification. The main objective of this study was to contribute to the understanding of the importance of crop diversification in meeting the household’s goal of improved standards of living. The mean-variance (E-V) approach and random utility theories were used to guide the study. Data was collected from150 smallholder farmers using a structured questionnaire. Ordered probit model was used to determine the influence of crop diversification on standard of living. This study arrived at the finding that households standard of living was influenced by distribution and durationbased diversification. This study recommends that in order for farmers to improve their standards of living through farming, diversification should be undertaken in such a way that there is more emphasis to at least one particular crop which the farmer has competitive advantage in its production as well as failure to neglect short season crops such as most horticultural crops. The government should provide a conducive environment for farmers to improve their levels of education and household average income per month since these factors may help to boost diversified agriculture that lead to improved standard of living. Farmers should be supported on how to take advantage of diversification in improving their standards of living. This may be achieved if necessary infrastructure (irrigation, credit access, improved information access and good road network) can be put in place.