Kenya is an agrarian economy and most people derive their livelihoods from smallholder agriculture but there is no consensus among policy makers and scholars on the viability of small scale farming in the country. There is a tendency for small farmers to ebeen made to identify entrepreneurial activities that result into human capital formation. This study addresses this problem by identifying the entrepreneurial
behaviour that lead to human capital collected from a survey of a sample size of 388 small farmers, drawn from Thika region of Kenya. Quantitative description was used to measure the extent of entrepreneurial behaviour while logit model was used to e
entrepreneurial behaviour on the human capital formation. The results show that
the entrepreneurial behaviour of blending agricultural and non
businesses have a significant effect on the small farmers’ ability to pay med
bills. However, commercial mixed farming and value addition in agriculture were
found to be more of survival strategies as they do not result in human capital
formation. Furthermore, availability of business opportunities and favourable government policies, has a positive influence on the human capital formation. The research recommends the government to come up with policies that can create a favourable environment for farmers to establish non agricultural businesses.