Does cooperative membership facilitate access to credit for women farmers in rural Kenya?

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Potential borrowers' demand for credit is restrained by agricultural risk, while microfinance institutions favor male over female farmers because the latter have no collateral. We investigate whether women's membership in cooperatives facilitates access to credit. Primary data from Kenya were used. Descriptive statistics, propensity score matching, and probit regression methods were applied. The results show that 78 % of the respondents did not apply for credit mostly because of high interest rates and being risk-averse; while 60 % of those denied credit were due to lack of collateral. The estimates indicate that joining cooperatives increases the probability of female farmers' access to credit; transparency in cooperatives' financial activities increases the probability of accessing credit by 72 %. Given the core role of cooperatives, there is a need for a favorable environment in which cooperatives can form, develop, and thrive. Cooperatives need support from the government and development agencies to buffer their financial and management capacities and skills training. Subsequently bolstering women farmers' participation in cooperatives.

Original languageEnglish
JournalJournal of Agriculture and Food Research
Volume18
ISSN2666-1543
DOIs
Publication statusE-pub ahead of print - 18 Sept 2024
MoE publication typeA1 Journal article-refereed

Fields of Science

  • 512 Business and Management
  • Access to credit, Cooperatives
  • 415 Other agricultural sciences
  • Women farmers, Rural Kenya

Cite this