Access to and use of Information on Credit Facilities by Farmers in Kiambu County

Abstract

Research in Kiambu County shows a variety of farmers‟ information needs. Among subsistence farmers who produce a mix of food and cash crops, land size is 2-2.9 acres. Large-scale farmers grow more cash crops. Most farmers keep dairy cattle for milk and manure. This paper focuses information needs on credit, the key emerging issues. Using a descriptive research design we gathered qualitative and quantitative data on how farmers accessed credit information they needed; sources; and usage. We took a random sample of 150 farmers, 18 to 55 years, selected from 897 farmers, covering 28 cooperatives. A descriptive research design was applied. Stratified Random Sampling technique was used, with face-to- face interviews and semi-structured questionnaires. Face-to-face interviews and semi-structured questionnaires were used. Specifically, we itemized a) farmers‟ information needs and search on the sub-clusters–loans availability from providers, interest rates charged, availability of low interest rates, supplementary services offered by credit providers, and availability of government funds; b) information sources from the cluster: Cooperatives, Banks, Government Offices, Churches, NGOs, No information access, Salesmen, and Other people; and c) usage of the information and challenges thereof. The study reveals access to information on loan availability by providers, interest rates charged, and lowest interest rates were the most sought-after sets (in that order). Government funds information is the least sought. Top providers are Cooperatives, Banks and Government, in that order. On usage, loans from the cooperatives and banks finance projects such as construction of boreholes, increasing dairy animals or planting additional crops. Credit from cooperatives is flexible. It may feature loans in kind, e.g., animal feeds.