EFFECT OF PRICING STRATEGY ON MACADAMIA NUT PRODUCTION: A QUANTITATIVE STUDY AMONG SMALL-SCALE FARMERS IN KIRINYAGA COUNTY, KENYA


James Ngari Muhinyu (MBA) , Dr. George Rukaria (PhD) , Prof. Peter Mwaura (PhD) , Dr. Herbert Imboga (PhD)
1 & 2. Maasai Mara University, Kenya, 3. Laikipia University, Kenya , 4. Jomo Kenyatta University of Agriculture and Technology, Kenya
Abstract
Macadamia farming offers an important source of income for producers worldwide and especially for small-scale farmers in Kenya. Kirinyaga County is one of the major macadamia producers within the central and eastern highlands of Kenya. The crop is a major source of income for small-scale farmers. However, the county is experiencing low average yields, with trees producing only 50% of the crop potential. With such low yields, the livelihood of small-scale farmers is at risk. The objective of the study was to analyze the effect of pricing strategy on macadamia nut production among small-scale farmers in Kirinyaga County. The study was anchored on the Cobweb theory. The target population was 8,004 small-scale macadamia farmers in Kirinyaga County. The study used a descriptive survey design and the multistage random sampling technique. A structured questionnaire was used, and the data was analyzed with the aid of SPSS version 26. A simple linear regression model was used in data analysis. The OLS assumptions were tested before conducting regression analysis. The results revealed a positive and significant association between pricing strategy and production of macadamia nuts (r = 0.379, p = 0.000) and R² = 0.143, meaning that 14.3% of the variance in production of macadamia nuts is explained by pricing strategy. ANOVA analysis reported an F-statistic (53.379) with a p = .000. The t-value of 6.318 was higher than the critical t-statistic (1.96). The null hypothesis that “There is no significant effect of pricing strategy on production of macadamia nuts by small-scale farmers in Kirinyaga County” was therefore rejected. The study concluded that the pricing strategy had a significant effect on the production of macadamia nuts by small-scale farmers in Kirinyaga County. The study recommended that the government, through the ministry of agriculture, should facilitate a partnership between macadamia farmers and macadamia processors in which a pricing strategy that protects their mutual interests is crafted.
Keywords: Small-Scale Farmers, Pricing Strategy, Productivity And Production Of Macadamia Nuts, Cobweb Theory.
Journal Name :
EPRA International Journal of Economics, Business and Management Studies (EBMS)

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Published on : 2025-12-10

Vol : 12
Issue : 12
Month : December
Year : 2025
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