Credit Facilities and Growth of Large-Scale Sugarcane Farms in Migori County, Kenya
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Date
2018
Authors
Otecko, David Okoth
Omagwa, Job
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal Corner
Abstract
Over the past decade, the sugar sector in Kenya has been facing decline with numerous sugar production companies
forced to close down. One of the factors leading to the closure of the sugarcane factories is the low crushing level due to
inadequate cane supply. Successive governments have put in place policies and measures to ensure growth in the levels of
cane production with little or no results. The lack of growth in the production of sugarcane has been attributed to
numerous factors with lack of access to credit facilities being one of the major challenges. The purpose of the study was
to determine the effect of credit facilities on growth of large-scale sugarcane farms in Migori County, Kenya. The study
was anchored on: life cycle theory, loan able funds theory, and the theory of financial intermediation. The study adopted
descriptive cross-sectional research design. The target population of the study was all the large-scale sugarcane farmers
in Migori County, Kenya. The study adopted purposeful sampling technique to pick respondents. The study collected data
using questionnaires. The data was analysed using descriptive analysis and multiple linear regression analysis. The study
found that the nature of credit had a positive but insignificant effect on growth. In addition, the study established that
access to credit has a positive and significant effect on growth whereas the terms and conditions of credit were
determined to have a negative and significant effect on the growth of large-scale sugarcane farms in Migori county,
Kenya. The study concluded that the type of financial institution offering credit was not relevant to the growth of the
farms; the farmers preferred long-term credit to finance their growth; the terms and conditions attached to loans and
the processing of the loans were impediments to access to credit and subsequently curtailed borrowing.
Description
A research article published in The International Journal of Business & Management
Keywords
Large-scale farmer, productivity, growth, access to credit, terms and conditions of credit, nature of credit
Citation
The International Journal of Business & Management. Vol 6 Iss 11, 2018