Formal Conditions that Affect Agricultural Credit Supply to Small-scale Farmers in Rural Kenya: Case Study for Kiambu County
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Date
2015
Authors
Nyairo, N.M.
Njuguna, Edward
Journal Title
Journal ISSN
Volume Title
Publisher
Global Society of Scientific Research and Researchers
Abstract
Credit is an important factor in agricultural production especially to small holder agriculture. This
study was to establish the effect of formal lending conditions that affect the supply of agricultural
credit to farmers such as interest rates and collateral requirements. The study adopted a descriptive
research design and target population was the Credit managers and loan officers in four Kenya
Commercial Bank (KCB), Equity bank, Family bank and Cooperative bank banks in Gatundu South.
The study used a simple regression model to establish that the credit agricultural credit access is still
affected by the aforementioned conditions. From the study, policy recommendations were public
education on the effects of interest rates. Banks should come up with products that suits small scale
farmers’ needs such as group lending, affordable mode of payment that will attract farmers to borrow
agricultural credit
Description
Keywords
agricultural credit, collateral, interest rates, banks, smallholder
Citation
International Journal of Sciences: Basic and Applied Research (IJSBAR) (2015) Volume 20, No 2, pp 59-66