Economic Analysis of Honey Production and Marketing in Baringo County, Kenya: An Application of the Institutional Analysis and Development Framework

Abstract

This study analyzes honey production and operations of various honey product markets in Baringo County of Kenya using the Institutional analysis and Development framework. Honey production has been promoted as a pro-poor income generating activity because it is accessible to marginalized communities and requires little land. However, without value addition and access to market, this potential will hardly be achieved. Results showed that most beekeepers fetched very low prices in the market due to selling honey as raw, which in turn has a negative effect on their livelihoods. This perpetuates poverty and restricts the beekeepers to small scale-production because lack the necessary capital to expand their enterprises. Those who went a step further and refined their honey products got better prices, which contribute better to mitigation of the prevailing poverty. Additionally, membership in groups means lower transaction costs because search and bargaining costs are already catered for. It is clear from the current study that there is a lot that needs to be done pertaining to the honey market in Kenya and, particularly, in Baringo County. To mitigate market inefficiencies, public investments in the form of infrastructure, research and development are needed within the County.

Keywords: Honey, Markets, Transaction costs, value addition, Kenya