Drivers of Labour Productivity in Flower Farms in Naivasha, Kenya

Jared Isaboke Mose

doi:10.5539/sar.v6n4p117

Abstract

Although Kenya is the most successful producer and exporter of fresh produce and flowers in sub-Saharan Africa, other countries both in Africa and elsewhere, offer strong competition that could erode export market share in future. Increased labor productivity is crucial for Kenya’s competitiveness. This study aimed at examining the key drivers of labour productivity in flower farms in Naivasha, Kenya. Descriptive survey design was employed and stratified proportionate random sampling technique used to select 381 respondents from who data was collected using a questionnaire. A log-linearized Cobb-Douglas model was used examine determinants of labour productivity. The results showed that workers’ participation in Labor unions, Information & Communication Technology and workers’ skills acquired through training were the major factors that determined labour productivity by 35.4 percent, 19 percent and 14.7 percent respectively. While worker’s wage increase and tools used by a worker influenced labour productivity by 9 percent and 11.4 percent respectively. Worker’s level of education and worker’s experience also increased labour productivity by 5.1 percent and 4 percent respectively. The study recommends that; the Kenyan government should give special attention to education to produce skilled and innovative workers. Flower Farms should invest more in training of workers to acquire relevant skills, acquisition of appropriate tools; improve ICT infrastructure and support labor union in the flower farms.

Highlights

Kenya is the third largest flower exporter in the global market which is dominated by Netherlands which accounts for about 55 percent of total global exports followed by Colombia 18 percent (Ksoll et al 2009)
This study aimed at examining the key drivers of labour productivity in flower farms in Naivasha, Kenya
The results showed that workers’ participation in Labor unions, Information & Communication Technology and workers’ skills acquired through training were the major factors that determined labour productivity by 35.4 percent, 19 percent and 14.7 percent respectively

Summary

Introduction

Kenya is the third largest flower exporter in the global market which is dominated by Netherlands which accounts for about 55 percent of total global exports followed by Colombia 18 percent (Ksoll et al 2009). Flower industry is Kenya’s top foreign exchange earner. It employs over 50,000 people directly and supports several hundred thousand indirectly. It contributes to the country’s status as a leading African economy and provides a source of income for many Kenyans. Growing globalization leading to expansion in commodities market and competition has made labour productivity a deciding factor in the competitiveness and survival of firms. Labor productivity typically gives manpower input expressed as labor expense to the amount of output generated (Borcherding and Liou, 1986). Labor productivity may be defined as the quantity of output generated by labor (manpower) in a given period (Drewin, 1982)

Objectives

Methods

Conclusion