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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Smallholder Farmers Credit Repayment Performance in Lugari Division, Kakamega District
Authors:Jama, M.A.
Kulundu, D.M.ISNI
Year:1992
Periodical:Eastern Africa Economic Review
Volume:8
Issue:2
Pages:85-91
Language:English
Geographic term:Kenya
Subjects:agricultural credit
small farms
farm management
Agriculture, Natural Resources and the Environment
Development and Technology
Economics and Trade
Abstract:The major concern of this study is to find the relative importance of the factors affecting loan repayment performance by smallholder farmers with the aim of proposing measures that can help improve the exercise. Primary cross-section data on credit repayment by smallholder farmers, collected in Lugari Division, Kakamega District, Kenya, in 1990, was analysed using the ordinary least square regression method. Unlike most previous studies, which use a single equation to capture the relationship between various factors and loan repayment performance, this study employs a recursive model which attempts to capture the interrelationship between the independent variables used. The main findings of the study are that loan diversion, farm income, farmers' attitude towards loan repayment, proper use of purchased farm inputs and sources of income from farming activities have a statistically significant influence on loan repayment performance. The study further found that late loan issue to farmers and inadequate supervision and advice have a significant influence on loan diversion. Bibliogr., notes, ref., sum.
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