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Paper short abstract:

National, county and cooperative leadership significantly influence the coffee sector in Kenya. A key observation is that the institutional framework of cooperatives is a double-edged sword that has served to both empower and dis-empower farmers. This has been dependent on leadership at all levels.

Paper long abstract:

Leadership and institutions are widely acknowledged as being integral to development. In exploring the extent to which good quality institutions and leadership co-exist and interact, several pertinent questions arise. Can significant development occur in the presence of 'good' leadership and 'bad' institutions? Conversely, can development occur in the presence of 'good' institutions and 'bad' leadership? In studying the co-existence and interaction of leadership and institutions, I use the coffee sector in Kenya as the basis for analysis. The sector offers a unique study of leadership and institutions for several reasons. Economically, coffee contributes significantly to the GDP and foreign exchange. More importantly, it is a source of livelihood for more than 700,000 farmers and millions employed in the sector. Commonly referred to as a 'political crop,' the national government has strictly regulated its production since colonial terms. At the local level, the devolution of the Kenyan government in 2010 resulted in County governments taking over certain agricultural functions. Coffee cooperative leadership is also key to the functioning of the sector. Small-scale farmers with less than five acres are mandated to cooperative membership. In this paper, I will analyze decisions made by national, county and cooperative leaders, to effect changes in the coffee sector and make it more profitable for farmers. A key observation is that the institutional framework of cooperatives is a double-edged sword that has served to both empower and dis-empower farmers, depending on the leadership at the cooperative, county and national level.