The aim of the study was to determine the farm level technical efficiency and its determinants among smallholder sugarcane farmers in Malava Sub-county, Western Kenya. Primary data were collected using questionnaires from a sample of 384 farmers through systematic random sampling. The study applied stochastic frontier analysis and Tobit regression analysis using computer software STATA. The results found that technical efficiency of sugarcane farmers ranges from almost zero to 0.9829, with mean value of 0.7069, implying that an average farmer could increase sugarcane productivity by 29.31% at the existing level of resources. Maximum likelihood estimate of technical efficiency depicted that the use of fertilizer, labour, seed-cane and farm size are positive and significant at 1% level in determining technical efficiency. Tobit regression analysis showed that education, farming experience, family size, credit access and extension services were positive and significant in contributing to technical efficiency. However, age of the farmer, farm distance from home and contract engagement was negatively influencing technical efficiency. The study recommends the Kenyan government to formulate policies that ensure provision of quality extension services, increased credit access and education among smallholder sugarcane farmers. The results also recommended the need for a review of the existing contract engagement policies among sugarcane farmers.

This study evaluated the effect of participation in factory contracted services on the profitability of smallholder sugarcane farmers inMalava Sub-county in Western Kenya. Primary data were collected using structured questionnaire from a sample of 384 farmers usingsystematic random sampling and proportionate sampling. Analysis of variance was applied to determine if there was a significant difference between profitability of contracted and non-contracted farmers. The effect of contracted services on profitability among contract farmers was analyzed by multiple linear regression. The results showed that contracted extension, labour and credit services had significant effect on farmers’ gross margins. The Kenyan government should formulate policies that enhance provision of contracted extension, labour and credit services. The need for a review of the existing contract engagement terms among sugarcane farmers is also evident in this study. Keywords: smallholder farms, sugarcane, contracted services, gross margins