DOI: 10.36347/sjahss.2016.v04i09.018

Pages: 1077-1085

This study determined to find the critical factors that affect the accessibility of credit by small scale dairy farmers in Trans Nzoia County of Kenya. A survey study design was used and the study purposively selected a sample size of 100 dairy farmers who were randomly selected. Main data collection tools used was close-ended questionnaires. The data was analyzed by use of descriptive statistics and then presented using tables, pie charts and graphs. The study findings depict a clear significance of this study in determining factors that affect borrowing characteristics of small scale dairy farmers in the county. Although an estimated 93% of the farmers engage in dairy farming for income purposes, only 25% earn 50% and above of their income from it. A multiple regression analysis to predict on factors affecting accessibility of credit depicted a statistically significantly value of, F (6,164) = 1.384, p < .0005, R2 = 0.048. All the variables had statistically significantly to the prediction, p < .05 apart from Account History. Since Variable-History of Account had a missing correlation. Therefore the study concluded that the significance of this study and the need to address all the highlighted factors that are directly linked to poor borrowing characteristics of small scale dairy farmers in the county. The study recommended solutions to these highlighted factors that included enlightening small scale farmers on the importance of accessing and utilizing credit services with an aim of improving their dairy farming capacity just like their counters who practice large scale.