Growing Export-Oriented Crops in Kenya: An Evaluation of DrumNet Services

This paper evaluates a program in Kenya that encourages the production of exportoriented crops by providing smallholder farmers with credit linked to agricultural extension and marketing services. We use an experimental design in which farmer selfhelp groups are randomly assigned to either a control group, a group receiving all DrumNet services, or a group receiving all services except credit. We find among the services offered by DrumNet, credit is the most important. Since the production of export crops requires a significant investment in capital and inputs, without credit farmers are less likely to plant the suggested crops. Overall, the results show that DrumNet is an effective model for encouraging the production of export-oriented crops. _____________________________________________ We wish to thank Jonathan Campaigne, Vince Groh and Zack Lenawamuro for their patience and encouragement throughout this research. We also would like to thank IDS for the data collection efforts and IDRC for making it possible. All errors are our own. Nava Ashraf Harvard Business School Xavier Giné The World Bank Dean Karlan Yale University and Innovations for Poverty Action