MST-Department of Geography

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Browsing MST-Department of Geography by Author "BED, ANNE SORE"

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    Credit Accessibility and Motorcycle Transport Service in Kakamega County, Kenya.
    (Kenyatta University, 2024-04) BED, ANNE SORE
    The transport services shape the livelihoods of the population living in rural sub-Saharan Africa and have significant implications for poverty alleviation and ease of mobility. However, the unmet demands by public transport services have leveraged several informal transportation modes such as the adoption of the motorcycle either for personal mobility or the creation of an informal public transport system. Nonetheless, there are significant challenges to ensuring that the motorcycle transport activity operates smoothly. The acquisition of a motorcycle in Kenya entails both formal and informal financing mechanisms. Due to the contextual gaps in the studies relating to financial arrangements surrounding the acquisition of motorcycles, the study sought to evaluate credit accessibility and the growth of motorcycle transport services in Kakamega County. The study had four objectives; to assess the sources of credit for motorcycle transport; to establish the determinants of the choice of credit facility; to evaluate the constraints in accessing credit facilities by motorcycle owners; and to determine the influence of credit facilities on the growth of motorcycle transport services in Kakamega County. The study was supported by the financial intermediation theory. The study was situated in Kakamega County with a specific emphasis on the Kakamega East sub-county and adopted a descriptive design with a target population of 14,500 motorcycle owners from which 144 motorcycle owners were drawn through multi-stage random sampling. The study used two primary research instruments; the questionnaire and interviews to collect primary data. The instruments were validated through a panel review and pilot testing. Descriptive and inferential statistics were used to analyse data and the output was presented in tabular and pictorial formats. The findings showed that motorcycle owners mainly acquire these assets through loans from credit unions (SACCOs) and financing institutions (commercial banks and microfinance). These owners selected the credit facilities based on perceived friendlier terms and conditions, friends' opinions and nearness to a financing institution. Based on the ANOVA analysis, F = 3.309, p < 0.05, the null hypothesis that credit access does not significantly influence the growth of motorcycle transport service in Kakamega County was rejected and concluded that accessibility to credit facilities influenced the number of motorcycles owned and thus by extension influenced the growth in motorcycle transport service. The most important determinant of the use of credit facilities was the rate of interest, securing guarantees and collaterals. Most of the owners belonged to a SACCO because of the ease of accessing credit and savings. Challenges in accessing credit included unwilling guarantors, lengthy application procedures and impediments to accessing credit due to credit history information. The study made the following conclusions; access to a credit facility significantly impacted motorcycle transport. Lastly, the study recommends that the financing institutions introduce specific credit facilities for motorcycle ownership, increase entrepreneurial and business skills by training the owners and encourage the motorcycle owners to form or join a SACCO.