TITLE:
Determinants of Credit Access and Amount of Credit by Youth in Rachuonyo North Sub-County
AUTHORS:
Bernard Otieno Odhiambo, Edith Gathungu, Florence Opondo
KEYWORDS:
Youth Unemployment, Agri-Enterprise, Credit Access, Financial Institution
JOURNAL NAME:
Open Access Library Journal,
Vol.10 No.7,
July
20,
2023
ABSTRACT: Youth unemployment is a worldwide challenge that every economy is struggling with. In Africa, the agricultural sector presents lots of opportunities for the youth that can address youth unemployment. Despite the existing opportunities in Agri-enterprises, numerous challenges limit youths from seizing the opportunities. The most common challenge is limited capital for starting and operating Agri-enterprises. Financial institutions and other programs have developed financial products to support the youths in Agri-enterprises. However, the availability of credit has not translated to the uptake of agricultural activities. The objective of this study was to examine factors influencing credit access and the amount accessible by youths. The double hurdle model was used to analyse this study. The study found that gender, education level, size of the enterprise, training, availability of collaterals, and group membership positively influenced the decision to access credit, while the age of the youth, collateral and repayment period affected positively the amount borrowed. The study recommended financial institutions relax their loan terms and conditions to the youths so that youths can easily access the loans.