An evaluation of willingness to pay for organic vegetables in Nairobi, Kenya

Summary

There is a gradual increase in the land acreage under organic farming in Kenya. Moreover, the number of organic enterprises has increased in the past decade. There is an increase in the demand for organic products by consumers in the urban and peri urban areas in Kenya. Further, Governments, (National and County) and non-governmental institutions have made significant investments in the promotion of organic farming. Despite the investments and growing demand, the number of consumers who are willing to pay for organic vegetables in Nairobi is low. Therefore, the current study evaluated the consumption levels of organic vegetables among consumers in Nairobi. Second, the study analysed the factors that influence Consumer Willingness To Pay (WTP) for organic vegetables in Nairobi. The data was collected through interviews from 308 consumers selected using a systematic random sampling procedure in areas where organic outlets are located. A logit regression was used to analyses the determinants of WTP for organic vegetables in Nairobi. The hypotheses test indicated that there was statistical difference in the level of consumption among consumers of organic vegetables. Findings indicate that the mean willingness to pay price premium for a 2kg organic cabbage averaged at twenty four percent (KES. 8.40) above the normal conventional price. Health and nutrition, non-contamination with chemicals were key considerations that consumers made while buying organic products. Secondly, Age, education and health significantly determined the willingness to pay for organic vegetables in Nairobi. This study recommends that consumer awareness messages should be around health and nutrition benefits. Furthermore, investments should be in extension to promote organic farming awareness. These findings are useful to policy makers, organic consumers, producers and development agencies in developing strategies to match production with consumption.