In this study we identify the determinants of the participation rural households in the land rental market in Kenya.
On the basis of rural households from Laikiapia district, we test a number of theoretical hypotheses on what determines the participation of households in land rental markets in Kenya. According to our findings, rental markets have important positive equity and efficiency effects in Kenya, despite existing imperfections. We find that land-poor households access land through the land rental market, and are able to access land through renting in than through sales markets. Policy attention should focus on issues which impede performance of rental markets to contribute to further efficiency improvements and poverty reduction in rural areas of Kenya.
