Financial technological Innovation and Access is the Key to Unlocking African Agricultural Potential: A Case Study of Dairy in Kenya

Kennedy Pambo

No 212608, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: In Kenya agriculture contributes 24% to the GDP yet lending to the sector is only about 4%. A major constraint to increasing efficiency in smallholder enterprises in rural areas is therefore, limited access to financial services. Lack of working capital for traders in rural areas inhibits the purchase, trade and processing of agricultural produce. This limits the amount of produce a farmer can market and acts as a disincentive to reaching his/her productive potential. Furthermore, most Microfinance Institutions (MFIs) lack a value chain approach to financing and are unable to remove the financial constraints along a specific value chain. Appropriate financing services along the value chain can help to enhance the productivity and profitability of various small-scale rural stakeholders. Therefore, the study assessed the prospects for financial innovations and access in improving dairy farmers’ livelihoods through a case study approach. The findings provide a strong evidence that appropriate financial innovation is the missing link in agricultural productivity paradigm and the food security equation in African countries including Kenya.

Keywords: Agricultural and Food Policy; Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 16
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-ino, nep-pr~, nep-mfd and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212608

DOI: 10.22004/ag.econ.212608

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