Abstract: Using data from a 2000 household survey, the effects of rural roads on sustainable agriculture was examined in selected semi-arid areas in Kenya. A Tobit model was used to establish the factors that influence the decision to invest in soil conservation measures and the level of investment in terracing and a Three Stage Least Squares (3SLS) method was used to determine the direct and indirect impact of road infrastructure on terracing. The study findings show that poor physical road infrastructure endowment, distance to crop fields and degree of farm orientation significantly influence the likelihood of reduced terracing intensity. However, slope, household wealth status, household size and erosion status of crop fields significantly influence the likelihood of intensified terracing. The direct effect of road infrastructure is not significant on maize though negative, while on beans it is negative and significant. Other factors that are significant include: degree of farm orientation, wealth, slope, distance to and erosion status of crop fields. Given the high costs of provision of roads, the policy challenge is to involve non-governmental organizations and local communities to upgrade and maintain rural roads.