Effects of structure and conduct on the performance of small-scale dairy farmer groups in Kericho and Nakuru counties, Kenya: a panel data study

Milk productivity among small-scale dairy farmers in Kenya remains below potential despite widespread participation in farmer groups designed to enhance agricultural practices and managerial skills. Persistent output disparities across similarly trained groups suggest that internal organizational dynamics may be influencing performance. This study used a group-level panel dataset covering 2018–2021 to examine how group structure and leadership conduct affect the performance of small-scale dairy farmer groups in Kericho and Nakuru counties. Although data were collected from individual farmers, the farmer group was the unit of analysis. For each group and year, individual farmers’ milk output was averaged to obtain the group’s mean milk performance, which served as the dependent variable in the panel model. The research addressed a critical gap in empirical understanding of how governance design and behavioural norms within farmer groups shape performance outcomes, an area often overlooked in development policy and practice. Using multistage purposive sampling, data were collected from six sub-counties through interviews with 336 small-scale dairy farmers affiliated with 78 dairy farmer groups. Analysis using a Random Effects Model with Feasible Generalized Least Squares (REM–FGLS) identified that formal constitutions, higher joining or registration fees, externally initiated group formation, highly familiar leader–member relationships, and table banking were negatively associated with average milk performance. Leadership training, cooperative affiliation, effective rule enforcement, and negotiation of external partnerships were positively associated with performance. The findings suggest that inclusive group arrangements, appropriate entry costs, trained leadership, cooperative linkages, effective rule enforcement, and contextually relevant external partnerships may be associated with stronger group performance.