Determinants of Agri-Lending Among Financial Institutions in Kenya

dc.contributor.advisorAlhassan, Abdul Latif
dc.contributor.authorMaloba, Michelle
dc.date.accessioned2018-09-06T13:15:05Z
dc.date.available2018-09-06T13:15:05Z
dc.date.issued2018
dc.date.updated2018-08-24T10:07:56Z
dc.description.abstractThis study seeks to examine the factors that influence Kenyan financial institutions’ lending behaviour towards the agricultural sector. Secondary panel data from 15 licensed financial institutions (commercial banks and deposit-taking microfinance institutions) for a period of 6 years (2011-2016) was used after which a panel multiple regression model was estimated using random-effects to examine the significant determinants of agri-lending by financial institutions. The study found that financial institution equity and risk on credit were negative and statistically significant in affecting the gross agricultural loans ratio while financial institution size, return on credit and financial institution liquidity were insignificant. As a result, the researcher recommends that financial institutions should devise better risk management strategies in order to reduce volume of non-performing loans in agriculture. Furthermore, the Kenyan Government should enforce the requirement that regulated financial institutions should hold a minimum of 10%-15% agricultural loans in their portfolios. This would steer larger banks to increase their investments in the agriculture given the economic benefits that the country would receive as a result.
dc.identifier.apacitationMaloba, M. (2018). <i>Determinants of Agri-Lending Among Financial Institutions in Kenya</i>. (). University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/28417en_ZA
dc.identifier.chicagocitationMaloba, Michelle. <i>"Determinants of Agri-Lending Among Financial Institutions in Kenya."</i> ., University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2018. http://hdl.handle.net/11427/28417en_ZA
dc.identifier.citationMaloba, M. 2018. Determinants of Agri-Lending Among Financial Institutions in Kenya. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Maloba, Michelle AB - This study seeks to examine the factors that influence Kenyan financial institutions’ lending behaviour towards the agricultural sector. Secondary panel data from 15 licensed financial institutions (commercial banks and deposit-taking microfinance institutions) for a period of 6 years (2011-2016) was used after which a panel multiple regression model was estimated using random-effects to examine the significant determinants of agri-lending by financial institutions. The study found that financial institution equity and risk on credit were negative and statistically significant in affecting the gross agricultural loans ratio while financial institution size, return on credit and financial institution liquidity were insignificant. As a result, the researcher recommends that financial institutions should devise better risk management strategies in order to reduce volume of non-performing loans in agriculture. Furthermore, the Kenyan Government should enforce the requirement that regulated financial institutions should hold a minimum of 10%-15% agricultural loans in their portfolios. This would steer larger banks to increase their investments in the agriculture given the economic benefits that the country would receive as a result. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - Determinants of Agri-Lending Among Financial Institutions in Kenya TI - Determinants of Agri-Lending Among Financial Institutions in Kenya UR - http://hdl.handle.net/11427/28417 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/28417
dc.identifier.vancouvercitationMaloba M. Determinants of Agri-Lending Among Financial Institutions in Kenya. []. University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/28417en_ZA
dc.language.isoeng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherbusiness
dc.subject.otherdevelopment finance
dc.titleDeterminants of Agri-Lending Among Financial Institutions in Kenya
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
uct.type.filetypeText
uct.type.filetypeImage
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