Effects Of Credit Assessment Determinants On Credit Uptake In The Agricultural Financing Sector In Kenya: A Case Of South Imenti Sub County, Kenya

Food Security is a vital cog in every fiscal and monetary growth of all countries worldwide. It is a state when all people have economic, social and physical access to nutritious, safe and sufficient food that meets food preferences and dietary needs for a healthy and active life at all times. Lack of funding confines farmers’ productivity and improved income hence a major impediment for farmer’s especially small-scale farmers in third world countries. The purpose of the project was to assess the effect of credit assessment determinants during credit uptake. The Specific Objectives was to determine how character, financial capacity, capital contribution, collateral and credit conditions affect credit access to farmers in South Imenti. The study was based on two theories namely prospect and Lewin’s Change Management Theory` which anchored the research study. The design of the study was carried out in South Imenti sub-county within Meru county farmers. Primary data was collected from 336 among the 2,133 in South Imenti farmers (stratified sampling) in Meru County. A questionnaire was the mode of collecting primary data where interviewed farmers were identified by transect in a preselected region whereby after the questionnaire was drafted pilot study was conducted to ensure effective data collection tool was used. The software utilized to analyse the primary data was SPSS (24). Study findings depict that farmers in Imenti South Sub-county are made up of a diverse mixture of all age groups while majority are young and middle aged. Regression model was able to explain 77.9 percent of the success in credit application for Agricultural loans.