INFLUENCE OF DEMOGRAPHIC CHARACTERISTICS ON ACCESS TO FINANCIAL SERVICES BY RICE FARMERS IN KENYA’S NATIONAL IRRIGATION SCHEMES
Abstract
Purpose: The study examined how demographic characteristics specifically education, age, marital status, and household size influence rice farmers’ access to financial services in Kenya’s national irrigation schemes. Guided by the Theory of Financial Intermediation, it explored how financial institutions can address transaction cost and information asymmetry barriers in rural farming contexts.
Methodology: The research adopted an ex post facto design, enabling the analysis of existing relationships without manipulating study variables. Data were collected from 311 rice farmers using structured questionnaires and analyzed using Pearson correlation and linear regression techniques to determine the strength and significance of relationships between demographic factors and access to financial services.
Findings: The results revealed a statistically significant and positive relationship between demographic characteristics and access to financial services (r = 0.712, p = .001; β = 0.224, p < 0.05). Education, age, marital status, and household size emerged as key determinants influencing farmers’ ability to access credit, savings, and insurance products. The study established that younger, less educated, and unmarried farmers face more barriers to financial access compared to their older, educated, and married counterparts.
Conclusion: The analysis highlights demographic traits as key to rural financial inclusion, urging financial institutions to offer tailored, gender-inclusive products with simplified access for less educated and younger farmers.
Recommendations: The study recommends enhancing land titling, asset documentation, and income diversification, alongside targeted financial products and outreach to address diverse demographic needs in underserved farming communities.
Keywords: demographic characteristics, financial services, rice farmers and Kenya’s national irrigation schemes
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