joechoka/Determinants-of-Agricultural-Credit-Performance-in-Kenya

Domain:

agriculturesocioeconomic

Record type:

paper

Creator:

joe

Host:

Analysis of Determinants of Agricultural Credit Performance in Kenya: The Case of Agricultural Finance Corporation, Uasin Gishu District # Analysis of Determinants of Agricultural Credit Performance in Kenya ## The Case of Agricultural Finance Corporation, Uasin Gishu District **Author:** Jackson Opati Echoka **Institution:** University of Nairobi **Year:** 2010 ## Abstract The main research objective was to analyze the determinants of agricultural credit performance in Agricultural Finance Corporation (AFC) Kenya. The specific objectives were to analyze the historical and current performance of AFC and test the null hypotheses that costs of lending, institutional organization and group lending have no influence on delinquency of agricultural credit in AFC Uasin Gishu District of Kenya. The problem stems from poor performance of agricultural credit in AFC perceived through a declining growth trend in portfolio and client base, Profit before Tax (PBT), and persistent high loan delinquencies. The method used is an empirical analysis of AFC corporate performance records and a truncated regression of secondary data from AFC loans in Uasin Gishu District. A Maximum Likelihood Estimates (MLE) Tobit model was utilized because the dependent variable, delinquency rate, is non-negative and limited at zero. The MLE option adjusts the estimates of the coefficients to take into account the effect of truncating the sample at zero. The study established that agricultural credit delivered through AFC faces both external and internal challenges. External challenges relate to the policy environment, climate, market and socioeconomic risks. Internal challenges are associated with interest rates charged, operational prudence and poor lending practices. The tests of significance led to rejection of the null hypotheses and the conclusion that the costs of lending, institutional arrangements and group-lending activities influence the delinquency rate and, therefore, the performance of agricultural credit provided by AFC in Uasin Gishu District, Kenya. This implies that policy intervention is necessary to transform AF …

Visit

github.com

DETERMINANTS OF FINANCIAL PERFORMANCE AMONG SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN KAKAMEGA COUNTY KENYA

Purpose: The main objective of this study was to investigate determinants of financial performance o

Determinants of Agricultural Credit Demand and Supply among Small-Scale Farmers in Nigeria

This paper analyses the factors determining the demand for and supply of agricultural credit (loans)

DETERMINANTS OF AGRICULTURAL PRODUCT EXPORTS PERFORMANCE OF ETHIOPIA

The paper has explored the factors that determine agricultural product export performance in Eth

Credit Enhancement and Performance of Hydroelectric Energy Projects in Kenya

Renewable energy investment has been underexploited in Africa and Kenya in specific due to financing

Credit Risk and Lending Performance of Commercial Banks in Kenya

Abstract Credit risk poses substantial exposure both to the banks and the economy; a scena

Determinants of Capital Structure of Agricultural Firms in Kenya

This paper contributes to the capital structure literature by investigating the determinants of capi