EFFECT OF ECONOMIC ACTIVITY DIVERSIFICATION ON SUSTAINABLE LIVELIHOODS AMONG FISH FARMERS IN KAKAMEGA COUNTY, KENYA

Abstract

This study investigates the effect of economic activity diversification on sustainable livelihoods among fish farmers in Kakamega County, Kenya. With the increasing demand for fish products and the challenges faced by traditional farming practices, exploring alternative economic activities has become imperative. This study aimed at establishing the effect of economic activity diversification on Sustainable livelihoods among fish farmers in Kakamega County. Specific objectives included to examine the effect of vertical diversification on Sustainable livelihoods among fish farmers in Kakamega County, To determine the effect of structural diversification on Sustainable livelihoods among fish farmers in Kakamega County, To examine the effect of Portfolio diversification on Sustainable livelihoods among fish farmers in Kakamega County and finally, to evaluate the moderating effect of entrepreneurship determinants on the relationship between economic activity diversification and sustainable livelihoods among fish farmers in Kakamega County. The study was guided by Sustainable Livelihoods Theory, economic diversification theory, entrepreneurial theory and the value chain theory. Descriptive and survey research designs were used in the study. The target population was 4500 fish farmers in Kakamega County from which a sample of 354 fish farmers was selected for the study using the Krejcie and Morgan Table 1970. Data was collected using closed-ended questionnaires. Data collected was analyzed using SPSS version 26. The researcher was cognizant of ethical principles of research. The study’s findings revealed that 29.5% of variations in Sustainable Livelihood among fish farmers in Kakamega County was explained by structural diversification, 44.7% by Portfolio diversification and 30.1% was explained by Vertical Diversification. Generally, Economic Activity Diversification explained 50.2% changes on sustainable livelihoods. When moderated with Entrepreneurial determinants, the influence of economic diversification could explain 58.1% of the changes in sustainable livelihoods among fish farmers in Kakamega County. Vertical diversification positively influences the accumulation of physical assets among the fish farmers, while Portfolio diversification positively correlates with increased income levels among fish farmers in Kakamega County, whereas, engaging in diverse economic activities facilitates interactions with a wider range of individuals; these expanded social networks provide access to valuable information, resources, and support systems. However, challenges such as limited access to finance, inadequate market linkages, and technical knowledge gaps hindered the full realization of the potential benefits of economic diversification among fish farmers. The study concludes that economic activity diversification is a viable strategy for enhancing sustainable livelihoods among fish farmers in Kakamega County. Policy interventions and support services should focus on addressing the identified challenges while promoting inclusive and sustainable diversification initiatives to maximize the socio-economic benefits for farming households. By harnessing the potential of economic diversification, fish farmers can improve their resilience, accumulate more physical assets, improve their income levels, and overall well-being, contributing to poverty reduction and rural development in the region.