Influence of Microfinance Services on Financial Sustainability of Tea Farmers
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Date
2020Author
Kinyua, Immaculate M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The purpose of this study was to investigate the influence of microfinances on Financial
Sustainability of tea farmers in Kenya; a case of Greenland Fedha microfinance in Embu
East sub county. The study was guided by the following objectives; to determine how
savings mobilization, influence Financial Sustainability of tea farmers in Embu East Sub
County; to establish the influence of farmer’s financial education on Financial
Sustainability of tea farmers in Embu East Sub County; to assess the influence provision
of loans on Financial Sustainability of tea farmers in Embu East Sub county and to
examine how adoption of Mobile Banking services influence Financial Sustainability of
tea farmers in in Embu East sub county. The study utilized a descriptive- survey research
design and the target population were 1405 respondents, where 1400 respondents were
small scale farmers and 5 employees. Since the targeted population of small-scale
farmers was large the researcher used 10% of the total population of small scale farmers
to get a sample size of 140 small scale farmers hence a total sample size of 145
respondents as the sample. Primary data was collected through the use of a questionnaire.
Data was then cleaned, tabulated and analyzed with the aid of Statistical Package for
Social Sciences (SPSS 21.0). The collected data was analyzed quantitatively using
descriptive techniques of mean and standard deviation and presented in tables and cross
tabulation form. Qualitative data was chronologically arranged with respect to the
questionnaire outline to ensure that the correct code was entered for the correct variable.
The data was presented using tables. The study found out that is a positive relationship
between Savings Mobilization; Farmers Financial Education; Provision of loans;
adoption of mobile banking and Financial Sustainability of tea farmers in Kenya. It was
then concluded that; Savings Mobilization; Farmers Financial Education; Provision of
loans; adoption of mobile banking and Financial Sustainability was a good facet to
realizing financial sustainability of the tea sector especially the targeted small scale
farmers. Based on the findings of the study, the following recommendations were made;
There should be concerted efforts by the management of MFIs in place to put in adequate
measures through training and recruitment to enhance the competence and performance
of its employees at the human and conceptual level of organization, as the best policies
will be harnessed through a high competency and great intellectual ability. Microfinance
Institutions of top management should embrace a culture of self-sustenance through
exploring on ways to generate their own income and extending the same to farmers
through the concept of saving mobilization. High levels of accountability should be put
in place by the MFIs and the government in place to ensure the budgetary allocation of
credit facilities to farmers is concomitant with income available and priorities should be
given in terms of the needs on the ground at the local level. Research on how to get
collaboration and joint ventures for funding and mobilization of resources should be
should be done between the microfinance institutions and farmers aimed at curbing
financial constraints witnessed through fully utilizing the mobile banking platforms
available.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- Faculty of Education (FEd) [5980]
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