Factors Influencing the outcome of Formal Credit Requests by Small-Scale Rice Farmers in Teso District, Kenya

1
Paul A. Odundo
Paul A. Odundo
2
Millicent J.I. Ekasiba
Millicent J.I. Ekasiba
3
Charles M. Rambo
Charles M. Rambo
4
Samwel O. Mwanda
Samwel O. Mwanda
1 University of Nairobi

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Small-scale farming plays a crucial role in poverty alleviation and hunger reduction in line with the first Millennium Development Goal (MDG). New rice technology was introduced in Kenya in 2003 to boost production, fill up the national rice deficit and improve food security. However, anecdotal evidence suggests that the adoption of the new rice technology remains below targets. The main reason cited by farmers for laxity is financial constraints, which impedes infrastructural development and acquisition of necessary inputs and equipment. However, no comprehensive study has ever focused on the relationship between farmers’ profile and the outcome of formal credit requests. Consequently, this study was conducted to identify and explain factors influencing the outcome of applications for formal credit by small-scale rice farmers in Chakol Division of Teso District. Farmers were identified through registers compiled and maintained by the Lake Basin Development Authority (LBDA) and traced to their homes. Both quantitative and qualitative analysis techniques were use to analyze the data. The study found that the outcome of applications for formal credit was significantly related to gender, marital status, education level, income, type of land tenure, land size, farming experience and number of previous credit requests.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Paul A. Odundo. 2014. \u201cFactors Influencing the outcome of Formal Credit Requests by Small-Scale Rice Farmers in Teso District, Kenya\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 14 (GJMBR Volume 14 Issue A5): .

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GJMBR Volume 14 Issue A5
Pg. 47- 59
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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July 31, 2014

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English

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Small-scale farming plays a crucial role in poverty alleviation and hunger reduction in line with the first Millennium Development Goal (MDG). New rice technology was introduced in Kenya in 2003 to boost production, fill up the national rice deficit and improve food security. However, anecdotal evidence suggests that the adoption of the new rice technology remains below targets. The main reason cited by farmers for laxity is financial constraints, which impedes infrastructural development and acquisition of necessary inputs and equipment. However, no comprehensive study has ever focused on the relationship between farmers’ profile and the outcome of formal credit requests. Consequently, this study was conducted to identify and explain factors influencing the outcome of applications for formal credit by small-scale rice farmers in Chakol Division of Teso District. Farmers were identified through registers compiled and maintained by the Lake Basin Development Authority (LBDA) and traced to their homes. Both quantitative and qualitative analysis techniques were use to analyze the data. The study found that the outcome of applications for formal credit was significantly related to gender, marital status, education level, income, type of land tenure, land size, farming experience and number of previous credit requests.

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Factors Influencing the outcome of Formal Credit Requests by Small-Scale Rice Farmers in Teso District, Kenya

Millicent J.I. Ekasiba
Millicent J.I. Ekasiba
Paul A. Odundo
Paul A. Odundo University of Nairobi
Charles M. Rambo
Charles M. Rambo
Samwel O. Mwanda
Samwel O. Mwanda

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