Effect Of Microfinance Institutions Services On Performance Of Agribusinesses In Kenya

Abstract

The purpose of this study was to establish the effect of Microfinance Institutions services on performance of Agribusinesses in Kenya. Specific objectives were; to determine the effect of microfinance loans, microfinance savings and microfinance training on performance of Agribusinesses in Kenya. The study adopted descriptive research design and the target population was 3,163 farmers, who were active members of Microfinance Institutions and have been accessing loans from the MFIs. Simple random sampling procedure was used to select a sample of 355 farmers for the study. Questionnaire was the selected instrument for data collection. Data was analysed using descriptive statistics, Correlation analysis and multiple regression analysis. The study found that Microfinance loans, Microfinance savings and Microfinance training have a significant positive relationship with performance of Agribusinesses. The study recommends that government should put in place policies that facilitate farmers in accessing loans from MFIs by guaranteeing them. Farmers should also improve on the culture of saving and also utilize training facilities offered by MFIs. MFIs should diversify their products to include products like insurance for farmers.