Effects of Micro Finance Credit on the Growth of Small Holder Farmers in Agricultural Finance Corporation: a Case Study of Kiambu County

Abstract

The study interrogates the effects of microfinance credit on the growth of smallholder farmers in Kenya. Growth of smallholder farmers cannot be overemphasized as they contribute a considerable amount in the Kenyan gross domestic product (GDP). The study determined how increase in finance has led to increase in rural income, food security and improved nutritional status. The study started by considering the main variables which include microfinance credit and small holder farmers. The main objective was to determine the effects of microfinance credit on the growth of smallholder farmers in Kenya. This was coupled by specific objectives that include determination of the level of savings, risk mitigation measures and training of the farmers. A case study research design was anchored on descriptive in tandem with correlation research design. The study targeted a population of 327 smallholder clients in AFC with a sample size of 64 clients established in their respective locations. In data collection, questionnaires were solely as the main data collection instrument. Finally, the data was analyzed by using various descriptive statistics and regression analysis model that will eventually be presented using frequency tables, charts and graphs.