Blockchain's Smart Contract Technology on the Performance of the Small-Scale Agricultural Farms in Kenya

In Kenya’s small-scale agricultural sector, where productivity is often hindered by limited credit access, delayed payments, and exploitative intermediaries, blockchain-based smart contracts offer a bold new frontier. This study explores how these automated, self-executing agreements built on decentralized blockchain platforms are reshaping the performance landscape for smallholder farms. By enabling secure, transparent, and trustless transactions, smart contracts promise to streamline value chains, enforce agreements without intermediaries, and accelerate financial flows. Guided by a pragmatic philosophy and a mixed-methods design, this research draws on both quantitative and qualitative data. Focus group discussions with village champions provided contextual insight into farmers’ lived experiences with smart contract platforms. A census of 52 blockchain-enabled agricultural firms yielded structured survey data, analyzed using descriptive statistics, thematic coding, Pearson and Spearman correlation tests, and regression modeling. Findings show that smart contracts significantly improve farm performance by enhancing payment reliability, reducing transactional friction, and increasing transparency in financial and operational records. The technology also fosters trust and coordination among stakeholders, while facilitating access to financing and new markets. Ultimately, this study underscores the transformative potential of blockchain smart contracts in small-scale farming not only as a technical innovation but as a catalyst for inclusive agricultural development. However, realizing this potential at scale will require sustained investment, policy support, and farmer-centered digital literacy initiatives.