Abstract: This study sought to investigate influence of selected socio-economic factors on uptake of agricultural loans by maize farmers in Kwanza Sub-County, Trans-Nzoia County. Specifically, the study determined how farmers’, loan experience and land ownership rights influenced uptake of agricultural loans by Maize Farmers. Descriptive survey design was adopted for this study. The target population were 5 crop extension officers, 10 credit managers and 14631 maize farmers spread across all the 4 wards in Kwanza sub-county. A sample of 384 maize farmers was considered. Stratified sampling technique was used to collect various characteristics of farmers in the four wards and systematic sampling was used to refine the sampling frame. The researcher used questionnaires and interviews to collect data. Data was collected by administering questionnaires to maize farmers and holding face-face interviews with Credit managers and Crop Extension Officers. In the findings, Loan experience and awareness had a great influence on uptake of agricultural loans compared to land ownership rights. Notably, 80.2% of the respondents observed that they would never apply for financial credit in the future because of the bad experience they had. Further, 70.6% maize farmers observed that they were auctioned by financial institutions for failing to repay their loans in full, they were discouraged to secure loans in future. The majority, 98.9% indicated that interest rates charged on loans made them to shy away from securing financial credit. It was recommended that financial institutions should create awareness to maize farmers to enable them make informed decision before securing loans. the government should review the interest cap act to allow market forces of demand and supply to determine interest rates.
Keywords: Influence, Socio-Economic Factors, Uptake, Agricultural loan, maize, Farmers.
Title: INFLUENCE OF SELECTED SOCIO-ECONOMIC FACTORS ON THE UPTAKE OF AGRICULTURAL LOAN BY MAIZE FARMERS IN KWANZA SUB-COUNTY, KENYA
Author: Erick Ngetich Kipruto, Dr. Patrick Cheben Simiyu
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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