Farmers Inaccessibility to Agricultural Credit in Nyandarua District, Kenya

• Published in: Asian journal of agriculture and rural development 2011-04, Vol.1 (2), p.64
• Main Authors: Vincent, Ng'eno, Muiruri, Erick Jotham, Nyangweso, Philiph Mulama, Langat, B K, Kipsat, Mary Jepkemboi
• Format: Article
• Language: English
• ISSN: 2304-1455; 2224-4433

Smallholder farmers face various challenges in production one of them beinginaccessibility to credit. This study specifically sought to identify householdsocio-economic characteristics and institutional requirements influencingaccess to credit among smallholder farmers in Nyandarua District. The studyused a Logit model. Both quantitative and qualitative data were acquired fromprimary and secondary sources. Primary data was collected usingquestionnaires through a survey design. A sample of 264 smallholder farmerswas selected using stratified, multi-stage random sampling techniques. Datawas analyzed using descriptive statistics and regression analysis usingStatistical Package for Social Sciences (SPSS). The study established thatsocio-economic constraints such as age, gender, household size, farm income,collateral and awareness are critical determinants of access to credit. The studyconcludes that household socio-economic characteristics do influence access tocredit. Key recommendations made include the need by government to dealwith bureaucracies involved in land registration to benefit majority ofsmallholder farmers who remain insecure in the land they use without proof ofownership and also to make easier the registration of lease certificates for thosewho do not own land and use land on leasehold tenure system. Financialinstitutions should also put in place less stringent credit requirements andreduce credit costs especially interest rates to make credit more affordable.