The level and determinants of rural saving among small-scale farmers:the case of Mumias sugar-cane outgrowers
Abstract
This study aimed at estimating the saving residual capacities
among the Mumias sugar-cane farmers. The study also focused on the
possible determinants of the saving residual of these farmers. The
possible determinants of saving residual considered in the study are
cash income per year, level of wealth assets held, and household size.
The other determinants considered are number of children in the household
attending school, age of the household head and education level
of the household head. A total of fourty five farmers (households)
were interviewed. A questionnaire was used for the collection of the
data.
Saving residual was estimated by deducting the total of all ths
possible expenditure outlets from the total cash or disposable income.
The relationships and the , causal relationships between the saving
residual and the possible determinants of saving residual we~e analysed
using the correlation analysis and the regression analysis respectively.
The correlation analysis and the regression analysis were carried out
by use of the XDS 3 computer package.
The results arrived at in the study indicate that saving residual
are substantial among the small-scale sugar-cane farmers in Mumias area.
The substantial saving residual are as a result of relatively high
incomes from sugar-cane growing. Only cash income and household size
were found to be significant determinants of the saving residual.
The paper ends by giving some recommendations on how the
substantial saving residual could be mobilised or utilized so that its
effects in economic growth of Mumias area and even of the country as a
whole could be felt.
Citation
Degree of Master of Science in Agricultural EconomicsPublisher
University of Nairobi Department of Agricultural Economics
Description
A thesis submitted in part fulfillment for the
Degree of Master of Science in Agricultural Economics
in The University of Nairobi