| dc.description.abstract | The study was set to determine the critical factors that affect the accessibility of credit by
small scale tea farmers. The study will assist small scale farmers with adequate knowledge
on how to access credit and the approach in dealing with the challenges experienced.
Financial institutions that provide credit will get information on the views of the small scale
farmers who are their customers. The study is also a source of reference material for similar
field studies.
The survey design was used in the study, since the objective was to investigate the factors
affecting credit access. The population of study consisted of 450,000 registered small scale
farmers and the credit providers. The study employed stratified random sampling to choose a
sample of 50 farmers for the study. One region out of seven regions as per KTDA
geographical spread was selected and then a factory was selected from the region. Then 50
farmers registered at the factory were chosen randomly. The stratum was based on the sizes
of tea farms of the respondent. Twenty credit providers were selected using the list of Banks
licensed to operate in Kenya and the SACCO‘s that provide credit to the small scale tea
farmers as per records available at KTDA. The data collection tool used was close-ended
questionnaires. The data were analyzed and then presented using tables, pie charts and
graphs.
The findings showed that most farmers obtain their main income from tea, and tea farms
ranged from half and acre to one acre. Most of the respondents had been in the tea farming
for 10-20 years. Factors that affected credit access were collateral and farmers lack of
understanding of credit services and products. The source of money for inputs was
established to be loans and farmers‘ savings. To improve credit access, the respondents
recommended that infrastructure should be improved to ensure service providers are closer to
the customers. Information technology should also be improved to ensure awareness among
customers. The study concluded that from the farmers‘ point of view, collateral and lack of
information were the most significant factors affecting small scale tea farmers access to
credit facilities. The lack of information on the lending process also affected decision making
among the small scale tea farmers. The study recommended that improving access to credit
facilities can only be successful if farmers are enlightened on the credit process, in addition,
collateral should also be put ready by farmers applying for credit or alternatives to collateral
sought. | en_US |
