Dissertation (MA Development Studies)This study examined the contribution of oil palm farming to poverty reduction for small scale farmers in Kigoma Rural District, Tanzania. Specifically, the study identified different sources of income among small scale farmers; compared poverty levels between small scale oil palm farmers and non-oil palm farmers and examined the challenges which small scale farmers face. The study employed descriptive survey design (cross-sectional), whereby 50 respondents in the category of small scale oil palm farmers, 50 respondents in the category of non-oil palm farmers and 6 key informants were interviewed. Data were collected using questionnaires, interviews and observations respectively. Data were then analyzed using SPSS version 20.0 and Microsoft Excel. The study found that, agriculture (cultivation and livestock keeping) was the main source of income to 82% of small scale farmers in Kigoma Rural District, and oil palm was an important cash crop. However, results showed that, a small scale oil palm farmer earned an average of Tshs 175,000 while non-oil palm farmers earned 89,000 Tshs annually (approximately Tsh 14,000 and 9,000 Tshs monthly, an amount way below the basic needs Poverty Line in Tanzania which isTshs 36,482 per adult equivalent per month). The T-test showed statistic significant difference (P<0.05) of net income earned between oil palm and non-oil palm small scale farmers. As oil palm farmers have higher income, they also own a large number of valuable assets and access to water and health services compared to non-oil palm small scale farmers who had few assets with less value. This is also accompanied by difficulties in accessing water and health services. Moreover, small scale farmers were faced by challenges including inadequate awareness of agriculture policy, insufficient extension officers and others. It is concluded that despite the challenges, oil palm has potential to reduce poverty in the study area. This implies that, if more effort are invested in improving and supporting oil palm production, the aimed target of poverty reduction will be achieved among small scale farmers. The study recommended that, the government and other development practitioners should provide more support to enhance oil palm production exclusively on providing inputs, imparting agriculture knowledge and providing credit services. Farmers should also engage themselves fully in oil palm production to increase income and reduce poverty.