TITLE:
Statistical Analysis of Small Holder Farmer Financial Exclusion: Case Study of Migori County, Kenya
AUTHORS:
Susan A. Okeyo, Galcano C. Mulaku, Collins M. Mwange
KEYWORDS:
Small Holder Farmer, Financial Exclusion, Migori, Kenya
JOURNAL NAME:
Open Journal of Statistics,
Vol.12 No.5,
October
27,
2022
ABSTRACT: There are estimated to be approximately 600 million small scale farmers
globally, and they produce most of the food consumed, especially in the
developing countries. The farmers, however, are often unable to obtain optimal
crop yields due to their exclusion from the financial systems in their
countries, which deem them too high risk to lend to. This results in the
farmers being unable to afford optimal inputs into their farms, hence
depressing their yields and the level of food security. This study aimed to
statistically determine whether the small scale farmers of Migori County in
Kenya are financially excluded or not, and to what extent. Data were collected from the farmers through a questionnaire survey, and
subsequent statistical analysis has shown that indeed the small scale farmers
of Migori are financially excluded to a large extent. Consideration of
non-financial data in the farmers’ credit rating has been recommended as a way
forward towards their financial inclusivity. This study provides scientific
proof of smallholder farmer financial exclusion, which proof is generally
difficult to find, especially in the developing countries.