MDF Theses and Dissertations (2024)

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Drivers of adoption of multiple sustainable aquaculture technologies among smallholder fish farmers in the Lake Victoria basin region, Kenya
(Strathmore University, 2024) Achom, B. E.
The study was undertaken in the Lake Victoria basin region (Busia, Homabay, Kisumu, and Siaya counties), Kenya, to determine the drivers of adoption of multiple sustainable aquaculture technologies. The global aquaculture sector grew in the recent past to become one of the most vital sectors to aid food security in the world but with constraints in factor inputs, new and better technologies must be developed to cope with the emerging demand for fish. Therefore, the study investigated the influence of socioeconomic factors, fish production, fish marketing and Aquaculture Business Development Programme (ABDP), in determining adoption decisions of fish farmers with regards to hormonal sex reversal, selective breeding and feed regime. The focus population comprised 5332 smallholder fish farmers as outlined in the ABDP report issued in 2022. Through multistage sampling (clustering and random sampling), primary data gathered from 724 fish farmers was analyzed using Multivariate Probit model. The findings revealed that the multiple sustainable aquaculture technologies were jointly adopted by fish farmers as complements. From the results still, the increase in household income, income from other activities, fish income, number of ponds, fish species being tilapia, high initial capital, amount of crops sold in kilograms, membership in fish association group, membership in fish marketing groups, high perishability and farmer being a beneficiary of ABDP were the critical drivers of adoption of multiple sustainable aquaculture technologies. Generally, the MVP model was fit for the test given the rejection of hypothesis that the three technologies were independent. The study concluded that the aquaculture technologies under study were widely practiced by farmers who were keen to see their incomes improve from all aspects as fish production thrives in tandem. From a policy and practice perspective, the study provided recommendations on the interventions of focus to build a business case of the trade to ensure farmers’ income increased. This could be achieved through continual farmer training and engagement with fisheries personnel in the counties; expansion of fish farming facility to at least 3 ponds of 300 square meters and establishment of suitable storage facilities such as temperature-controlled warehousing and logistics, all of which are imperative to the development of aquaculture sector. Key words: Sustainable aquaculture technologies, Multivariate Probit model, socioeconomic factors, fish production, fish marketing, Aquaculture Business Development Programme.
The Effect of risk factors on pricing of general business insurance products before and after COVID-19 pandemic: evidence from Kenya
(Strathmore University, 2024) Mwila, C.
Pricing is one of the critical practices of the insurance industry. In Kenya, very little research has investigated effect of risk factors on pricing of general business insurance products which is the gap that this paper aims to bridge. The study’s main objective was to determine the effect of risk factors on premium pricing of Kenya’s general business insurance products before and after Covid-19 pandemic, particularly with a focus on the motor insurance product line. The study was anchored on the Game theory. The research method used was quantitative, which informed the adoption of a cross-sectional study design and the target population comprised of all the registered general business insurers which were sampled out of a population of 61 insurers in Kenya. A census method was applied to select all the general insurers. This study utilized both secondary and primary data collection techniques. For secondary data, panel data on premium pricing and documented aspects of risk factors was sourced from published annual reports for the period 2018 to 2021 while primary data was obtained through questionnaires filled by risk officers, actuaries and insurance managers in four different departments of the selected insurance firms. The extracted research data was analyzed using Stata 16 and Statistical Package for Social Sciences (SPSS) version 28. Descriptive analysis described the data in terms of charts, frequencies, percentages, mean scores and standard deviations. The research also adopted a multiple linear regression analysis and multiple binary logistic regression to estimate the influence and effect of the independent variables on premium pricing for general business insurance products in Kenya and the results of the study were presented using tables. The study found that insurance sector regulation, prior insurance coverage, underwriting risk and market value had a significant effect on premium price. The study recommends that insurance companies adopt risk-based pricing in their pricing methodologies used for insurance products and that policies are put in place to ensure that the key risk factors identified as having an effect in the pricing of general business products such as motor insurance products are factored in their pricing methodologies. This would in turn assist in the overall enhancement of the profitability of Kenya’s sector.
Effect of digital financial services uptake on socio-economic status of households in Kibera
(Strathmore University, 2024) Ngandi, T.
The current economic conditions characterized by a high cost of living, high interest rates on loans and unemployment, digital lending products and services have increasingly become an option for many. Borrowing appetite has often led to bad debts, shifting between lending institutions to evade the responsibility to repay loans and resulting to debt accumulation. This study sought to find out the influence of digital financial services on the socioeconomic status of Kibera households. Specifically, the research sought to find out: the effect of digital credit services on socioeconomic status of households; the effect of digital savings services on socioeconomic status of households; and the moderating effect of household characteristics on the relationship between digital financial services and socioeconomic status of households. Primary data collection through administering structured questionnaires to the target population of households in Kibera. The questionnaires were issued randomly but purposively to households that used digital credit and digital savings. Descriptive statistics entailed mean and standard deviation were used for analysis. Inferential statistics, particularly regression analysis was conducted. OLS regression model was used to establish the relationship between the independent variables and the dependent variable. Notably, digital credit, digital savings and household characteristics had a positive relationship with socioeconomic status. Digital savings had a positive effect while digital credit reported a negative effect on socioeconomic status. Only one element of household characteristics namely, household size had a moderating effect on the relationship between digital financial services and socioeconomic status. The findings of this study are important to policymakers, regulators and digital financial services providers. The findings will be significant to future researchers who might need to refer or build on it through further research. The study recommended that there was need for policy makers to look at how the negative effects of digital credit on socioeconomic status can be reversed and maximize on the positive impact of digital savings on socioeconomic status of households. Key Words: Digital Credit, Digital Savings, Socioeconomic status, Household characteristics
Analysis of the drivers of financial performance of development financial institutions in Kenya
(Strathmore University, 2024) Katsenga, R. M.
The Development Financial Institutions are a critical nerve Centre to the economic growth of any country. The financial performance of Development Finance Institutions in Kenya over the last twenty years has not been performing according to the stakeholder expectations. DFI’s in Kenya had failed to provide a sustainable long-term finance to the industrial sector and the agricultural sector. This was evidenced by credit being allocated on the basis of political and social concerns, lack of effective and efficient incentives to collect. Studies on these development institutions have remained scanty with those that have attempted having varying outcomes thus making it difficult to provide a guide to policy formulation in Kenya. The purpose of the study was to analyse the drivers of financial performance of Development Financial Institutions (DFIs) in Kenya. The driver of financial performance considered in the investigation included asset quality, management efficiency and liquidity management in Kenya. The survey made use of census approach to arrive at five Development Finance Institutions employed in the investigation. Relying on information of the financial audited reports of these institutions, the data was retrieve spanning over the period 2012/2013 to 2019/2020. Laying the theoretical foundation for the study was the theoretical postulations of the CAMEL model and the Liquidity Preference Theory. The outcomes of the investigations were reached owing to the credit accorded to the descriptive and regression techniques with the outcomes presented in tables. The outcome uncovered that asset quality is a significant and negative driver of Development Finance Institutions’ financial performance; management efficiency was unfolded as a positively and significant driver of Kenyan Development Finance Institutions financial performance; while liquidity management was reported to be a significantly positive driver of Development Finance Institutions financial performance in Kenya. Relating to the outcomes, the investigation recommended that the management of Development Financial Institutions should strengthen the means through which non-performing loans could reduce to boost the financial performance of the institutions. This can be done through critical assessment of customers’ credit worthiness to reduce the amount of loans that are non-performing in Kenya.
Analysis of environmental, social and governance integration and sustainable lending practices by commercial banks in Kenya
(Strathmore University, 2024) Lengewa, S. J.
The global call for sustainable development has prompted businesses and financial institutions to adopt responsible practices that balance economic growth with environmental and social concerns. In Kenya, a rapidly developing nation facing significant environmental and social challenges, the role of commercial banks in promoting sustainability has gained increasing importance. Despite its proven benefits in other parts of the globe, commercial banks in Kenya are yet to fully integrate ESG in their lending practice, begging the question why? This study sought to determine the effect of environmental integration, social integration, and governance integration on sustainable lending practices of commercial banks in Kenya. The research methodology anchored on the positivist research philosophy and employed a descriptive research design where the study used questionnaires to collect data from employees from sustainability and credit departments of the 39 commercial banks that operate in Kenya. The stakeholder theory, legitimacy theory and stewardship theory guided the study and informed the research objectives, variables, and conceptual framework. Using ordinal regression analysis, the study regressed the predictors on the outcome variable. It was established that environmental integration, social integration and governance integration had a positive significant effect on the sustainable lending practices of commercial banks in Kenya. The study concludes that there exists a significant positive relationship between environmental, social and governance integration (ESG) and sustainability lending practices of commercial banks in Kenya. It is recommended that policy makers should proactively formulate robust policies mandating commercial banks to fully integrate ESG principles into their lending practices to promote sustainability. And that bank management should enhance their ESG disclosure procedures by incorporating critical and relevant ESG components that directly impact stakeholders‘ interests and overall bank operations. Keywords: Environmental integration, Social integration, Governance integration, commercial Banks and sustainable lending practices
Financial literacy and personal financial management among athletes in Kenya: moderating effect of digital literacy
(Strathmore University, 2024) Rotich, M.
Professional athletes have the opportunity to amass significant money at a relatively young age. From the standpoint of personal finance, athletes may find it difficult to manage such a large sum of money. The brief and unpredictable nature of an athlete's active career makes money management crucial. The study's objective was to determine the impact of financial literacy on Kenyan athletes' individual financial management. It also examined how financial literacy and individual financial management among Kenyan athletes were related to digital literacy. The study evaluated the influence of financial behavior, attitude, and knowledge on Kenyan athletes' individual financial management. It also sought to ascertain the impact of digital literacy on the relationship between financial literacy and personal financial management of Kenyan athletes. The study is based on the Theory of Planned Behavior and Social Learning Theory. In this investigation, the pragmatic philosophy was applied. The study employed a cross-sectional research design since data collection was done once. The population under study comprised all professional athletes in Kenya. Professional athletes formed the target audience at Iten Camps. There were 1,500 professional athletes in the Iten region. Using the Yamane formula, the sample size for this study consisted of 316 athletes. Standardized questionnaires were given to respondents to collect primary data for this research. The researcher used a translator to assist in gathering data from individuals who might not be able to communicate in English or Kiswahili. Quantitative approaches were applied to the processing of the data obtained from Likert-style questions. Data analysis showed that financial literacy significant influenced personal financial management of athletes in Kenya. Moreover, financial knowledge and financial control had positive and statistically significant effect on personal financial management of athletes in Kenya. In contrast, financial behavior had a negative and statistically significant effect on personal financial management in Kenya. Further, digital literacy did not moderate the relationship between financial literacy and personal financial management by athletes. The study recommends to Athletics Kenya to conduct financial training to athletes as part of training over and above the prime aim of training camps. This would improve their financial literacy that ultimately leads to better personal financial management.
Effects of venture capital funding on management quality of startups in Nairobi City County
(Strathmore University, 2024) Wakwoma, S. N.
Venture capitalists provide assistance to startups in an effort to address their financial and management failures. Therefore, this study examined effects of venture capital funding (venture capital financial; technical; and management support) on management quality of startups in Nairobi City County. The study adopted positivist research philosophy and employed a descriptive research design. The target population was 308 startups from which a sample size of 174 was calculated. chief executive officers, chief financial officers, or chief operating officers were purposefully selected as respondents. The findings indicated a positive and significant effect of venture capital financial support and management support on management quality. The study recommends for venture capitalists to provide ad hoc management support due to the diverse and unique nature of startups and the environment in which they are operating. This means flexible management support should be tailored to an enterprise and not undertaking a one-fits-all approach to providing management support. The study recommends for fiscal policies that will encourage international venture capitalists to invest in local startup firms. These policies can include having tax incentives among others to encourage international interest into the venture capital market. Key Words: Venture capital finance, Startups, venture capital funding, management quality, equity finance, debt finance, staged finance, syndicated finance, Venture Capitalists.
Factors contributing to borrower discouragement among Micro, Small and Medium Enterprises in Nairobi County, Kenya
(Strathmore University, 2024) Kithure, M. G.
The banking sector has made tremendous efforts towards providing opportunities for business enterprises to increase financial access which has been a major impediment to their growth and sustainability. Despite these efforts, small business remains financially constrained but at the same time are hesitant in applying for bank credit. This latent demand is viewed as borrower discouragement and potentially affects the ability of micro small and medium enterprises to attain their full potential in Kenya. This research examined the factors contributing to borrower discouragement among micro small and medium enterprises in Nairobi County. The study was guided by three specific objectives to: determine entrepreneur characteristics, firm level characteristics, and business environment influence on borrower discouragement among micro small and medium enterprises. The study was based on general systems theory, resource-based view, institutional theory, and deterrence theory. A positivist research philosophy was adopted under which a descriptive cross sectional research design was implemented. The target population was 12,492 enterprises in Nairobi County. Stratified simple random sampling was used to select 205 respondents. Data was collected through administration of questionnaire. Descriptive and inferential statistical analysis was done. Results of the study depicted that entrepreneur characteristics, firm level characteristics, business environment characteristics had a positive statistically significant effect on borrower discouragement. Policy recommendation is that targeted training programmes be designed for MSMEs, and undertaken regularly focusing on loan application procedures, requirements and proper use of funds. This will close gaps on product knowledge and address borrower apprehension. Key words: Entrepreneur characteristics, firm level characteristics, business environment characteristics, borrower discouragement.
Impact of board diversity on Environmental, Social and Governance disclosure in listed companies in Kenya
(Strathmore University, 2024) Saka, N. A.
The study undertaken focused on companies listed on the Nairobi Securities Exchange, to determine the impact of board diversity on ESG disclosure between the years 2018- 2022. In the 21st century, there has been a notable surge in sustainability concerns among governments, multinational corporations, public and private companies, as well as their stakeholders. Board plays a pivotal role in facilitating efficient disclosures as they embody firm’s values and connect with stakeholders. Using the Code of Corporate Governance, 2015 as a guide for board diversity variables, those that were assessed are; board age diversity, board gender diversity, board independence and board capabilities & skills, and the controlled variables; firm size, firm age and firm leverage. The empirical literature on board diversity and ESG disclosures has explored board diversity variables like independence, age, gender, and skills, but few studies have specifically identified the most crucial among these variables and this study aimed to fill this gap. Objectives included assessing the impact of board diversity practices on ESG disclosures, compliance levels with policies and regulations, and stakeholder perceptions. The study was pegged on the agency and resource dependency theories. The study adopted the positivist philosophy. The population comprised 60 NSE-listed companies, a descriptive research design was employed, where quantitative data collected through content analysis and the use of a questionnaire. Secondary data underwent panel regression analysis, while primary data was subjected to descriptive analysis. The findings of the study were that board gender diversity and board independence had a significant negative relationship with ESG whereas board capabilities and skills had a significant positive relationship. The following industries had a positive and significant relationship with ESG: banking industry, commercial industry and the construction industry and finally the years 2021 and 2022 had a positive significant relationship with ESG. Study findings will assist in developing more efficient policies to promote the disclosure of ESG activities of firms listed on the NSE and the encouragement of creation of awareness on ESG matters to stakeholders. By adding to existing literature on board diversity and ESG disclosure, the study will contribute to advancing discussions around ways in which the board attributes can be managed for efficient and effective disclosure.
The Challenges of access to and use of digital financial services by women in Homa Bay County, Kenya
(Strathmore University, 2024) Omego, E. A.
This study examines the background of Digital Financial Services (DFS) situation for women, specific emphasis on the challenges that inhibit women from efficiently using DFS to enhance finance freedoms in Homa Bay County. Limited access to appropriate financial services is one of the key challenges that prevent economic participation of women. Furthermore, female headed households are more likely than male-headed households to be poor due to limited economic opportunities. Digital financial services contribute to the expansion of financial inclusion of women, but in some countries, it is disproportionate, and even though access to finance for women is rising, the gender gap is still persistent. In Kenya, two-thirds of unbanked adults are women and the most significant barrier to women’s financial inclusion being access to and use of their assets to earn independent income (Demirgüç-Kunt et al, 2018.). Anchored on Unified Theory of Acceptance and Use of Technology (UTAUT) and Diffusion of Innovation (DoI) theories, the study highlights the challenges experienced by women and how these reflect on their financial decisions and the fundamental societal norms leading to these challenges. Mobile coverage and online bank usage as the primary representation of DFS usage, with data collected in the year 2023 via a study of selected women respondents in Homa Bay county. The data analysed using descriptive and inferential statistics and the findings were that women in Homa Bay County own digital devices, they had a good understanding of basic use of the digital devices and use digital financial services. Inferential analysis showed that differences in access to and use of DFS by women in the study area was due to variations in their digital financial literacy, with the women with a good comprehension of digital financial literacy being quite comfortable in its use and enjoyed using their devices. Socio-cultural norms did not establish a distinct effect on the nature of DFS services utilization apart from explaining number of daily logins. There were mixed relationships between perceived trust and risk against DFS use with a higher perception of doubt and reservation in the use of digital devices associated with lower logins. Perceived ease of use was associated positively with DFS usage, thus intimating that, women in Homa Bay County had a relatively high level of ease of use of digital financial services.
The Relationship between digital financial strategies and financial performance of microfinance banks in Kenya
(Strathmore University, 2024) Ondago, W. M.
Microfinance banks (MFBs) in Kenya play a significant intermediary role and financial inclusion of the unbanked. Despite substantial investments in technological tools and the integration of digital channels, MFBs in Kenya have experienced mixed financial performance over the last five years. This study addresses this discrepancy by investigating the relationship of digital financial strategies and financial performance. The specific objectives were to determine the effects of bank characteristics and use of digital financial strategies, to assess the perceptions of MFBs on the role of digital financial strategies on financial performance and to establish the association of digital financial strategies and financial performance of microfinance banks. Drawing upon Dynamic Capabilities Theory, Financial Intermediation Theory, and Financial Innovation Theory, this research employs a positivist philosophical approach and a mixed research design. The target population encompasses all 14 operational microfinance banks as of December 31, 2022. Both primary and secondary data were gathered, with secondary data sourced from Annual Bank Supervision Reports and audited financial statements from 2018 to 2022. Primary data was collected through structured questionnaires distributed to employees in the Finance and ICT departments of the 14 targeted microfinance banks. Data analysis involved both descriptive analysis and inferential statistics, including OLS regression analysis to generate research findings. The study results indicate that both mobile and internet banking significantly enhances the financial performance of MFBs. However, respondents identify regulatory and supervisory challenges, legacy infrastructure constraints, budgetary limitations, and difficulties in meeting rapidly evolving consumer demands as significant obstacles to the effective implementation of digital financial strategies. In conclusion, this study establishes that total assets, earnings, and credit risk of a bank exert a positive and significant influence on the adoption of digital financial strategies in MFBs in Kenya. Additionally, mobile banking, in terms of transaction value, exhibits a positive relationship with the financial performance of MFBs. The study recommends increased regulatory support from the Central Bank of Kenya and emphasizes the need for MFBs' top management to allocate more resources towards strategies that enhance the adoption and use of digital financial services. The findings of this study hold relevance for MFBs' management, policymakers, regulators, bank customers, as well as researchers and academicians alike.
Impact of development financing on financial performance of Nairobi County MSMEs
(Strathmore University, 2024) Jama, W. H.
This study sought to assess impact of development financing on financial performance of Nairobi County MSMEs. MSMEs are crucial to Kenya's economy, driving employment, GDP output, and inclusive growth. However, they face significant challenges such as insufficient financing, costly credit, and limited financial literacy. The study specifically aimed to address the following objectives: (i)examine the effect of E-lending on financial performance of MSMEs in Nairobi County, Kenya; (ii) assess the influence of collateral-free credit on the financial performance of MSMEs in Nairobi County; and (iii) determine the effect of business grants on the financial performance of MSMEs in Nairobi County. This research sought to understand the financial performance of MSMEs and assess the impact of DFIs to address these challenges. The study's insights can help policymakers and financial institutions develop tailored solutions to foster MSME growth and recovery, especially in the post-COVID-19 context. The study was anchored on Financial Intermediation Theory which helped demonstrate how financial intermediaries like Development Finance Institutions (DFIs) reduce transaction costs and enhance financial access for MSMEs. E-lending, collateral-free credit, and business grants illustrate the theory by facilitating efficient fund transfers, lowering financial barriers, and supporting MSME growth. It was also supported by Innovation Diffusion Theory. The research found that electronic lending, collateral-free credit, and business grants enhance financial access and promote business growth for MSMEs. The adoption of these financial solutions by DFIs illustrates the spread of these innovations, significantly increasing transaction volumes and reducing financing barriers in Kenya. A descriptive research design underpinned and guided the study. The target population comprised registered MSMEs in Nairobi County, with a study sample size of 120 participants. The primary research tool used was a structured questionnaire, while SPSS software supported the analysis of descriptive and inferential statistics. E-lending emerged as a significant contributor to SME financial performance, facilitating easier access to financing and improving profitability, as evidenced by studies in various contexts such as Nakuru CBD and Kyushu city. Collateral-free credit also played a vital role in enhancing MSME performance by removing financing barriers, leading to improved profitability and business expansion. Additionally, business grants were found to be crucial for SME growth, particularly for newer firms, although their effectiveness varied among different types of businesses. To optimize their impact, it was essential for grant providers to refine distribution systems, targeting support towards start-ups and younger enterprises while ensuring efficient resource allocation. Keywords: E-lending, collateral-free credit, business grants, MSMEs, financial performance, Development Finance Institutions, Nairobi County, financial access, innovation adoption, financial intermediation, GDP output, inclusive growth, COVID 19.
The Influence of digital marketing strategies on consumers purchase decisions for post-graduate programs in private universities in Nairobi City County, Kenya
(Strathmore University, 2024) Kimani, M. G.
Globally and locally, competition for post-graduate students is increasing. As a result, universities need to think of strategies that can help influence enrollment choices for their post-graduate programs. One such strategy is digital marketing. In this respect, the primary objective of the current study was to evaluate the influence of digital marketing on consumer product choice for post-graduate programs in Nairobi County. The specific objectives of this study were to investigate the influence of social media marketing, email marketing and website marketing on purchase decisions for post-graduate programs. The theories that underpinned this study were the Theory of Reasoned Action and the Learning Model of Consumer Decision Making. Positivism was used in this research. The research method adopted for this research was the descriptive cross-sectional design. Judgmental sampling was used to obtain the views of respondents, who consisted of post-graduate students in private universities in Nairobi. Primary data was collected using structured questionnaires that were administered using a fill-and-wait strategy. Data was analyzed using descriptive statistics (means and standard deviation) and inferential statistics (multiple linear regression). Findings suggest that digital marketing strategies – social media marketing, email marketing, and website marketing – have positive and significant influence on consumer purchase decision. Therefore, this concludes that social media marketing, email marketing, and website marketing are significant predictors of consumer purchase decisions for postgraduate programs in private universities in Nairobi. Website marketing had the strongest effect of the three strategies. Therefore, this research recommends leveraging these digital marketing to drive postgraduate enrollments with particular focus on website marketing for optimal results. Also, since this research focused on only three digital marketing strategies, further research is needed on other types of digital marketing. Keywords: consumer purchase decision, social media marketing, email marketing, website marketing
Digitalization factors influence on enterprise growth among handicraft enterprises in Nairobi City County, Kenya
(Strathmore University, 2024) Kariuki, P. W.
Digitalization has become an important component for the survival and growth of organisations and this become even more visible following the COVID-19 pandemic. The anecdotal evidence indicates a growing trend towards digitalization of the handicraft industry but this has been documented in developed nations and Asian context and less remains reported in the context of African and Kenyan handicraft sectors. Therefore, this study investigated digitalization factors that influence growth among handicraft enterprises in Nairobi City County. It examines the extent of digitalization readiness, digitalization acceptance, and digitalization diffusion on the growth of enterprises. The research was anchored on technology readiness, technology acceptance model, and diffusion of innovation theory. The study subscribes to positivist research philosophy and implements an exploratory research design. The target population was 725 registered handicraft manufacturing MSMEs in the Nairobi region from which a sample of 257 owner/managers were recruited into the sample size. A structured questionnaire was designed using close- ended items (background information) and Likert scale (variable information). Descriptive, correlation, and linear regression analysis was done and captured in tables supported by implications and interpretations. The results indicated digitalization (digital readiness, digital acceptance, and digital diffusion) explained 51.1% of variation on growth of handicraft enterprises. Further, digital diffusion, digital readiness, and digital acceptance respectively had a positive and significant effect on growth of handicraft enterprises. The study concludes that digital diffusion is the most important component of achieving digitalization in the handicraft sector. Therefore, the study recommends for knowledge transfer activities supported by higher education institutions as important for MSMEs to achieve digital readiness. Keywords: digitalization, readiness, acceptance, diffusion, enterprise growth
Analysis of factors influencing financial inclusion of coffee farmers in the littoral region of Cameroon
(Strathmore University, 2024) Bate, N. G. S.
The study delves into the determinants of financial inclusion among coffee farmers in the Littoral region of Cameroon, aiming to uncover factors influencing their engagement with the financial system. By analyzing individual farmer characteristics, farm farm business characteristics, and Microfinance Institutions (MFIs), the research seeks to elucidate their roles in fostering financial inclusion, including aspects like savings accounts and loan accessibility. Data collected from 300 respondents across rural areas will address knowledge gaps and provide insights into the relationship between financial inclusion and coffee farming. Utilizing Principal Component Analysis (PCA), an FI Index will be constructed to measure financial inclusion comprehensively. Correlation results reveal a significant and negative correlation between MFIs and Farm business characteristics (-0.391, p < 0.01), and no significant correlation between MFIs and Farmer Characteristics (0.083, p = 0.493), while Farm business characteristics demonstrate a moderate and significant positive correlation with Farmer Characteristics (0.319, p < 0.01). The findings suggest that Farm business characteristics and Farmer Characteristics positively influence financial inclusion, emphasizing the importance of fostering entrepreneurial skills among coffee farmers. The study proposes recommendations for policy and practice, including strengthening financial literacy programs, supporting entrepreneurship, improving access to financial services, enhancing collaboration, promoting policy reforms, and monitoring interventions. Further research avenues include longitudinal studies, comparative analyses, qualitative research, impact evaluations, policy analysis, and advocacy to deepen understanding and address limitations, ultimately contributing to inclusive development in the region.

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