Effect of digital financing on access to credit among farmers in Kirinyaga County
Date
2022
Authors
Kiragu, Alex
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Access to financing especially in the developing world has been an issue in a long time. Economic development model in the developing works has not been inclusive towards financial inclusion and exclusion but with influx of digital finance the trend has been reversed. Hence, the current study aims at examining the effect of digital finance in access to credit among farmers in Kirinyaga County. Specifically, the study aimed at examining the effect of digital finance infrastructure, digital finance ecosystem and regulatory environment on access to credit. The study was founded on supply leading hypothesis and diffusion of innovation model. The study applied descriptive correlation research design and collect primary data using questionnaires among 338 respondents selected through stratified sampling. Descriptive and inferential statistics analyzed the data that was presented in figures and tables. Results of the study revealed positive and significant effect of digital fintech infrastructure, digital fintech ecosystem and regulatory environment on access to credit among farmers in Kirinyaga County. From the findings it can be concluded that an increase in fintech infrastructure would result in an increase of credit accessibility among farmers in Kirinyaga County. Secondly, an increase in fintech ecosystem would lead to an increase in credit accessibility among farmers in Kirinyaga County. Further, an increase in regulatory framework would lead to an increase in access to credit among farmers in Kirinyaga County. The study recommends management of digital lending financial institutions to innovate lending solutions that can be accessed easily through mobile devices used by most farmers. Stakeholders such a telecommunication companies, commercial banks, technology firms and the government should be involved in establishing a solid financial ecosystem that will help farmers in accessing credit while at the same time protecting their rights. Digital lenders should also provide clear terms for farmers before accessing loans and clearly define the responsibilities of both parties.
Description
A Research dissertation submitted to the Strathmore University Business School in partial fulfillment for the Master of Science in Development Finance of Strathmore University
Keywords
Digital financing, Farmers_Kirinyaga County, Credit access