Does cooperative membership facilitate access to credit for women farmers in rural Kenya?
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 w...
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| Language: | English |
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Elsevier
2024-12-01
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| Series: | Journal of Agriculture and Food Research |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666154324004629 |
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| author | Rose Ingutia John Sumelius |
| author_facet | Rose Ingutia John Sumelius |
| author_sort | Rose Ingutia |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-cb86eab1f8524788a797dfba6514588a |
| institution | DOAJ |
| issn | 2666-1543 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Agriculture and Food Research |
| spelling | doaj-art-cb86eab1f8524788a797dfba6514588a2025-08-20T02:49:06ZengElsevierJournal of Agriculture and Food Research2666-15432024-12-011810142510.1016/j.jafr.2024.101425Does cooperative membership facilitate access to credit for women farmers in rural Kenya?Rose Ingutia0John Sumelius1Corresponding author.; Department of Economics and Management, Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27, Latokartanonkaari 5, FI-00014, FinlandDepartment of Economics and Management, Faculty of Agriculture and Forestry, University of Helsinki, P.O. Box 27, Latokartanonkaari 5, FI-00014, FinlandPotential 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.http://www.sciencedirect.com/science/article/pii/S2666154324004629Access to creditWomen farmersCooperativesRural Kenya |
| spellingShingle | Rose Ingutia John Sumelius Does cooperative membership facilitate access to credit for women farmers in rural Kenya? Journal of Agriculture and Food Research Access to credit Women farmers Cooperatives Rural Kenya |
| title | Does cooperative membership facilitate access to credit for women farmers in rural Kenya? |
| title_full | Does cooperative membership facilitate access to credit for women farmers in rural Kenya? |
| title_fullStr | Does cooperative membership facilitate access to credit for women farmers in rural Kenya? |
| title_full_unstemmed | Does cooperative membership facilitate access to credit for women farmers in rural Kenya? |
| title_short | Does cooperative membership facilitate access to credit for women farmers in rural Kenya? |
| title_sort | does cooperative membership facilitate access to credit for women farmers in rural kenya |
| topic | Access to credit Women farmers Cooperatives Rural Kenya |
| url | http://www.sciencedirect.com/science/article/pii/S2666154324004629 |
| work_keys_str_mv | AT roseingutia doescooperativemembershipfacilitateaccesstocreditforwomenfarmersinruralkenya AT johnsumelius doescooperativemembershipfacilitateaccesstocreditforwomenfarmersinruralkenya |