Agriculture contributes 23% to the Gross Domestic Product (GDP) of Kenya and is practiced by 80% of the rural population. At least 50% of smallholder farmers are constrained in accessing quality inputs due to inadequate credit. In addition most farmers default on the repayment of loans. Therefore this study aimed at determining the level and determinants of default in payment of loans among the farmer group members in Nakuru. The study used a multi stage sampling technique to sample 50 farmer group members. The data was collected using a pretested questionnaire and the data analysed using descriptive and qualitative methods. The results of the Logit regression showed that the default in repayment of loans is significantly affected by the level of education, age of the group, farm income and interest rate. Therefore it is recommended to increase farmer group trainings, adopt technologies to raise production and reduce interest rates on loans.
| Published in | International Journal of Agricultural Economics (Volume 1, Issue 1) |
| DOI | 10.11648/j.ijae.20160101.11 |
| Page(s) | 1-9 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2016. Published by Science Publishing Group |
Default, Credit, Micro Finance, Groups, Interest
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APA Style
Richard O. Akuno Nyang’aya, George Owuor, Emilly Moraa, David O. Ayieko. (2016). Group-Based Credit Re-payment: Evaluation of Factors for Default Among Smallholder Farmers in Nakuru District, Kenya. International Journal of Agricultural Economics, 1(1), 1-9. https://doi.org/10.11648/j.ijae.20160101.11
ACS Style
Richard O. Akuno Nyang’aya; George Owuor; Emilly Moraa; David O. Ayieko. Group-Based Credit Re-payment: Evaluation of Factors for Default Among Smallholder Farmers in Nakuru District, Kenya. Int. J. Agric. Econ. 2016, 1(1), 1-9. doi: 10.11648/j.ijae.20160101.11
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Download@article{10.11648/j.ijae.20160101.11,
author = {Richard O. Akuno Nyang’aya and George Owuor and Emilly Moraa and David O. Ayieko},
title = {Group-Based Credit Re-payment: Evaluation of Factors for Default Among Smallholder Farmers in Nakuru District, Kenya},
journal = {International Journal of Agricultural Economics},
volume = {1},
number = {1},
pages = {1-9},
doi = {10.11648/j.ijae.20160101.11},
url = {https://doi.org/10.11648/j.ijae.20160101.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20160101.11},
abstract = {Agriculture contributes 23% to the Gross Domestic Product (GDP) of Kenya and is practiced by 80% of the rural population. At least 50% of smallholder farmers are constrained in accessing quality inputs due to inadequate credit. In addition most farmers default on the repayment of loans. Therefore this study aimed at determining the level and determinants of default in payment of loans among the farmer group members in Nakuru. The study used a multi stage sampling technique to sample 50 farmer group members. The data was collected using a pretested questionnaire and the data analysed using descriptive and qualitative methods. The results of the Logit regression showed that the default in repayment of loans is significantly affected by the level of education, age of the group, farm income and interest rate. Therefore it is recommended to increase farmer group trainings, adopt technologies to raise production and reduce interest rates on loans.},
year = {2016}
}
TY - JOUR T1 - Group-Based Credit Re-payment: Evaluation of Factors for Default Among Smallholder Farmers in Nakuru District, Kenya AU - Richard O. Akuno Nyang’aya AU - George Owuor AU - Emilly Moraa AU - David O. Ayieko Y1 - 2016/04/14 PY - 2016 N1 - https://doi.org/10.11648/j.ijae.20160101.11 DO - 10.11648/j.ijae.20160101.11 T2 - International Journal of Agricultural Economics JF - International Journal of Agricultural Economics JO - International Journal of Agricultural Economics SP - 1 EP - 9 PB - Science Publishing Group SN - 2575-3843 UR - https://doi.org/10.11648/j.ijae.20160101.11 AB - Agriculture contributes 23% to the Gross Domestic Product (GDP) of Kenya and is practiced by 80% of the rural population. At least 50% of smallholder farmers are constrained in accessing quality inputs due to inadequate credit. In addition most farmers default on the repayment of loans. Therefore this study aimed at determining the level and determinants of default in payment of loans among the farmer group members in Nakuru. The study used a multi stage sampling technique to sample 50 farmer group members. The data was collected using a pretested questionnaire and the data analysed using descriptive and qualitative methods. The results of the Logit regression showed that the default in repayment of loans is significantly affected by the level of education, age of the group, farm income and interest rate. Therefore it is recommended to increase farmer group trainings, adopt technologies to raise production and reduce interest rates on loans. VL - 1 IS - 1 ER -
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