A Research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Actuarial Science at Strathmore UniversityThe Agricultural sector is a pillar of the economies of many developing countries around the world. In Kenya, the sector contributes an average of 24% to the GDP directly and 27% indirectly through connection to other sectors e.g. manufacturing and distribution and accounts for about 60% of the total employment in the country. The agricultural sector also accounts for 70% of export earnings. Small-holder farmers are the main producers of agricultural output in Kenya constituting of 80% of all the farmers. (Ministry of Agriculture, 2009) The Government therefore places a high priority on Agriculture as an important tool for development
