Original Research Article
Year: 2017 | Month: October | Volume: 4 | Issue: 10 | Pages: 1-11
Contribution of Agricultural Loans Accessibility to Performance of Small Holder Sugar Cane Farmers in Kakamega County, Kenya
D. S. Wanjawa1, Dr. C. T. Yugi2, W. M. Muli3
1Masters Student, 2Senior Lecturer, 3Lecturer,
Department of Accounting and Finance, P.o.Box 190-50100, Masinde Muliro University of Science and Technology Kakamega, Kenya.
Corresponding Author: D.S.Wanjawa
ABSTRACT
Agricultural growth is important for alleviation of poverty and stimulation of economic growth and development. The main objective of this study was to investigate the contribution of agricultural loans on performance of sugarcane farming in Kenya a case study of smallholder sugar cane farmers in Kakamega County. The study was guided by pecking order theory. The study employed causal research design. The target population comprised of 1850 sugar cane farmers in Kaka mega County who received agricultural loans for a period of more than 2 years and financial institutions which offer agricultural loans. A sample of 329 respondents was selected using stratified proportionate sampling techniques. Qualitative data was analysed using verbatim and narrations depending on theme while quantitative data was analysed using both descriptive analysis such as percentages and frequencies while inferential analysis comprised of correlation and regression analysis at 0.05 significance level. The findings revealed that agricultural loans have significant effect on performance of small holder cane farmers in Kakamega county Kenya as it explained significantly up to 19.8% change in performance. Loan accessibility had the highest effect (R=0.402) In conclusion, agricultural loans have significant effect on performance of small holder sugar cane farmers in Kakamega county Kenya hence this study recommends that there is need for government to come up with policies which would target sugar sector financing especially on interest rate which would increase accessibility of loans by the smallholder sugarcane farmers.
Key words: Agricultural loans accessibility, Performance of small holder sugar cane farmers, Kakamega County-Kenya
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