Influence of farmer capacity building in financial mobilisation on performance of smallholder irrigation projects in Migori County, Kenya.

Abstract

Irrigation is increasingly being accepted as a precursor to food security, employment creation and economic development. Irrigation accounts for up to 40% of world food production (Asian Development Bank [ADB], 2015). The development of 7,800 hectares under irrigation in Lower Kuja Irrigation Project is an attempt by the National Irrigation Authority to address food insecurity, unemployment and socioeconomic conditions in Nyatike Sub-County, Migori County (GIBB Africa, 2011). While the decision to development 7,800 hectares of land under irrigation is a noble idea that has potential to positively change the standard of living for citizens of Migori County, it’s important to understand that besides construction of physical infrastructure, other critical factors can affect achievement of these objectives. Thus, the study sought to assess the influence of farmer capacity building in financial resource mobilisation on performance of smallholder irrigation projects in Migori County. The study framed the alternate hypothesis as H1: There is a significant relationship between farmer capacity building in financial resource mobilisation and performance of smallholder irrigation projects in Migori County. The study was based on Resource Based View Theory (1959) by Edith Penrose. The study views Resource Based View Theory as explaining the importance of resource mobilisation to an organisation’s performance. The study adopted pragmatism as a philosophy, and used cross sectional and correlational research design. Using Krejcie and Morgan (1970) Tables, the study selected 341 respondents from a sampling frame listing 2,815 members in 15 smallholder irrigation projects of Lower Kuja Irrigation Project. The study used systematic random sampling to select the sample. Data collection was done using the questionnaire and classified using a 5-Point Likert Scale. Data was subsequently analysed using descriptive statistics (means and standard deviation) and inferential statistics (Pearson’s regression analysis at p-value of 5% significance level). The study findings show that personal savings and assets (3.427) is the most preferred source of credit, while commercial banks (2.988) is the least preferred source. Further, the results show that r = .801, r2= .641, F [5, 331] = 118.405, F critical = [2.2413], p<0.000<0.05. Hence, the study accepted the alternate hypothesis (H1), and concluded that personal savings and assets, agricultural cooperative societies, commercial banks, non-governmental organisations, and governmental organisations have significant influence on performance of smallholder irrigation projects in Migori County. Consequently, the study recommends that Migori County Government educate farmers in smallholder irrigation projects on loan facilities by different financial institutions. Further, the study recommends that the county develop a framework to assist smallholder irrigation projects to qualify for loans facilities operated by financial institutions. The study also recommends research on influence of financial resource mobilisation on performance of smallholder irrigation projects using longitudinal and experimental research design.