Investigation of challenges facing accessibility of Credit from commercial banks for financing Agricultural sectors in Kenya: (a survey of commercial banks in Nyeri County)

摘要

Accessibility of credit is vital for the development of any sector in the country. There hasudbeen a big challenge in the country in financing the agricultural sector. The researchudstudy aims at analysing the various challenges facing accessibility of credit fromudCommercial banks for financing agricultural sectors in Kenya. The study was carried outudin the various Commercial banks in Nyeri County. Kenya has a total of forty threeudcommercial banks. Out of this, Nyeri County has a total of eleven commercial banks withuda total of twenty five branches. The research adopted a descriptive survey approachudwhere staffs working in the banks represented in Nyeri County were sampled. As at 31studDecember 2012, the twenty five branches of the eleven commercial banks represented inudNyeri County had a total population of three hundred and seventy five (375) employees.udOut of this, the survey targeted the staffs who are involved in credit processes in theirudrespective institutions. These staffs include branch managers, Credit managers,udOperations managers and credit officers. The 11 commercial banks had 25 branchudmanagers, 20 Operations managers, 17 Credit manager and 94 credit officers. The studyudtherefore had a target population of one hundred and fifty six (156) banks staffs. Out ofudthese, 30% were sampled making a sample of 47 employees. Sampling was done usingudstratified random sampling technique. The research used primary data which wasudcollected through the questionnaires. The questionnaires had both closed and open endedudquestions and were administered through the employees of the various commercial banksudusing drop and later pick 'method. Data collected was both qualitative and quantitative.udQuantitative data was analyzed using the descriptive statistics of mean, mode andudmedian. Data has been presented using tables, graphs and charts. Qualitative data hasudbeen analyzed using content analysis. The response rate was 85.1% where out of theudissued 47 questionnaires 40 were returned and considered adequate to commence theudanalysis. The findings established that customer related challenges, agricultural activityudrelated challenges, loan related challenges and borrowing costs related challengesudinfluences the accessibility of credit from commercial banks for financing the agriculturaludsectors in Kenya. It was recommended that Commercial banks in Kenya should come upudwith more flexible and customer friendly solutions to enable easier access of credit to theudAgricultural sectors in Kenya.