Sunflower production is an important economic activity which is potential for improving livelihood outcomes among smallholder farmers’ households. However, despite such potentials, studies still debate on whether livelihood outcomes among smallholder farmers can be attained through sunflower cultivation or otherwise. This paper presents analysis of the livelihood outcome levels among smallholder farmers before and after engaging in sunflower cultivation. Also, it compared the livelihood outcome levels between sunflower and non-sunflower smallholder farmers. The study adopted a cross-sectional research design whereby household survey, focus group discussion and key informants interviews were used to collect data from 368 respondents. Qualitative data were transcribed, categorised, coded, and grouped into themes and analysed using constant comparison technique. Quantitative data were analysed by using descriptive statistics while difference in difference estimation was run to compare livelihood outcomes. Findings show that households of sunflower smallholder farmers’ had higher levels of livelihood outcomes and they were significantly different unlike before sunflower cultivation. The livelihood outcomes between sunflower and non-sunflower smallholder farmers’ households were significantly different (t = 12.51; p =0.000). The significant differences were evidenced by the number of household assets and access to financial services. Thus, sunflower cultivation stands a better chance for improving livelihood outcomes among smallholder farmers unlike other economic activities in the study area. Since findings show that some of the households had low level of livelihood outcomes it is recommended to smallholder farmers that they should consider building their livelihood capabilities through collective efforts as they are constrained by land size for cultivation. This can be done through forming farmers groups whereby they can join efforts to access microfinance loans and acquire small scale processing machines. This would enable them to increase household incomes by selling sunflower oil as well as seed cakes compared to selling few quantities of raw sunflower seeds individually.