Determinants of semi-formal credit participation among rural farm households in Kakamega County, Kenya


In recent years, devolved governments in Kenya have been offering semi-formal credit programs to rural households. Despite the key role of this type of credit in enhancing the welfare of rural household welfare, little is known on determinants of rural farm household participation in the credit programs. Therefore, this study sought to identify factors influencing farmers’ participation in the semi-formal credit program in Kakamega county. The study used a multi-stage sampling approach to gather data from 179 respondents. The data collected was analyzed using descriptive statistics and a probit model. The results indicated that the semi-formal credit accessed by rural farm households was allocated to both on-farm and off-farm enterprises. Also, factors that significantly influenced household participation in the semi-formal credit included farming experience, occupation of household head, group membership, distance to credit source, distance to the nearest market, and access to financial training. Based on the study results, policymakers and other stakeholders should offer financial training, thus enhancing farmers’ productivity and promoting their participation in semi-formal credit programs. Also, they need to encourage farmers to join socio-economic groups and engage in sustainable off-farm activities.


devolved governments; semi-formal credit program; rural farm household

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Published : 2022-04-04

Mukhwami, J., Gathungu, E., & Kalio, A. (2022). Determinants of semi-formal credit participation among rural farm households in Kakamega County, Kenya. Journal of Agribusiness and Rural Development, 63(1), 71–79.

Johnworker Toywa Mukhwami
Egerton University  Kenya
Edith Wambui Gathungu 
Egerton University, Kenya  Poland
Aquilars Mutuku Kalio 
Egerton University  Kenya

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