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Financial Factors, Financial Literacy and Coffee Output among Smallholder Coffee Farmers in Kenya

Author

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  • Patrick Nyatete Kenyanya

    (KCA University, Kenya)

  • Dominic Ndegwa

    (KCA University, Kenya)

Abstract

Financial literacy is crucial for smallholder coffee farmers as it provides them with the knowledge and skills needed to manage resources effectively, make informed decisions, and optimize financial practices, which ultimately enhances productivity. This study investigates how financial literacy moderates the relationship between financial factors and coffee productivity among smallholder farmers in Kenya, focusing on Murang’a County and grounded in the Resource-Based View Theory. Data from 232 randomly selected farmers, collected through structured questionnaires and analyzed using STATA, reveals that financial literacy significantly moderates the relationship between financial factors and coffee productivity. Specifically, it strengthens the effects of market accessibility, credit accessibility, and price volatility on coffee production, enabling farmers to make better-informed decisions and thereby increasing production.

Suggested Citation

  • Patrick Nyatete Kenyanya & Dominic Ndegwa, 2024. "Financial Factors, Financial Literacy and Coffee Output among Smallholder Coffee Farmers in Kenya," European Journal of Business and Management Research, European Open Science, vol. 9(6), pages 52-56, October.
    • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:6:id:52488
    DOI: 10.24018/ejbmr.2024.9.6.2488
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