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Role of Access to Credit in Rice Production in Sub-Saharan Africa: The Case of Mwea Irrigation Scheme in Kenya

Author

Listed:
  • Timothy N. Njeru
  • Yukichi Mano
  • Keijiro Otsuka

Abstract

This study explores the role of access to credit in improving rice production in Sub-Saharan Africa using the case of rice farmers in the large-scale Mwea irrigation scheme in Kenya. Using household level survey data, we find that the use of fertiliser and paddy yield per hectare are not significantly different among borrowers from the cooperative society, borrowers from rice traders and non-borrowers. However, borrowers from rice traders receive lower incomes and profits compared with non-borrowers largely due to the higher interest charged. Considering that such farmers who borrow from rice traders are generally poorer in financial, physical, and human capital and would have even made lower income and profit without rice trader credit, we suggest policies to facilitate further development of credit markets for both efficiency and equity of rice production in Mwea.

Suggested Citation

  • Timothy N. Njeru & Yukichi Mano & Keijiro Otsuka, 2016. "Role of Access to Credit in Rice Production in Sub-Saharan Africa: The Case of Mwea Irrigation Scheme in Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 25(2), pages 300-321.
    • Handle: RePEc:oup:jafrec:v:25:y:2016:i:2:p:300-321.
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    File URL: http://hdl.handle.net/10.1093/jae/ejv024
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    Cited by:

    1. Diao, Xinshen & Funk, Rebecca Lee & Jimah, Kipo & Kolavalli, Shashidhara & Takeshima, Hiroyuki, 2013. "Dynamics of transformation: Insights from an exploratory review of rice farming in the Kpong irrigation project:," IFPRI discussion papers 1272, International Food Policy Research Institute (IFPRI).
    2. Yasir A. Nasereldin & Abbas Ali Chandio & Maurice Osewe & Muhammad Abdullah & Yueqing Ji, 2023. "The Credit Accessibility and Adoption of New Agricultural Inputs Nexus: Assessing the Role of Financial Institutions in Sudan," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    3. Larson,Donald F. & Muraoka,Rie & Otsuka,Keijiro, 2016. "On the central role of small farms in African rural development strategies," Policy Research Working Paper Series 7710, The World Bank.
    4. Wainaina, P. & Njagi, T. & Onyango, K., 2018. "Credit constraints, off-farm participation and productivity; case of Kenyan rural sector," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277050, International Association of Agricultural Economists.
    5. Yukichi Mano & Kazushi Takahashi & Keijiro Otsuka, 2020. "Mechanization in land preparation and agricultural intensification: The case of rice farming in the Cote d'Ivoire," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 899-908, November.
    6. Nakano, Yuko & Magezi, Eustadius F., 2020. "The impact of microcredit on agricultural technology adoption and productivity: Evidence from randomized control trial in Tanzania," World Development, Elsevier, vol. 133(C).
    7. KOJIN, Emi & DO, Van Hoang & NGUYEN, Thiet & ARIMOTO, Yutaka & VO, Hong Tu & MANO, Yukichi & NGUYEN, Duy Can & TSUKADA, Kazunari, 2023. "Government and market initiatives for the governance of fertilizer quality in Vietnam," Discussion paper series HIAS-E-130, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    8. Yukichi Y. & Mano Yukichi Y. & Takahashi Kazushi & Otsuka Keijiro, 2017. "Contract Farming, Farm Mechanization, and Agricultural Intensification: The Case of Rice Farming in Cote d’Ivoire," Working Papers 157, JICA Research Institute.
    9. Takeshima, Hiroyuki & Agandin, John & Kolavalli, Shashidhara, 2017. "Growth of modern service providers for the African agricultural sector: An insight from a public irrigation scheme in Ghana," IFPRI discussion papers 1678, International Food Policy Research Institute (IFPRI).
    10. Mano, Yukichi & Njagi, Timothy & Otsuka, Keijiro, 2022. "An inquiry into the process of upgrading rice milling services: The case of the Mwea Irrigation Scheme in Kenya," Food Policy, Elsevier, vol. 106(C).
    11. Keijiro Otsuka & Yukichi Mano & Kazushi Takahashi, 2023. "The Rice Green Revolution in Sub-Saharan Africa: Issues and Opportunities," Natural Resource Management and Policy, in: Keijiro Otsuka & Yukichi Mano & Kazushi Takahashi (ed.), Rice Green Revolution in Sub-Saharan Africa, chapter 0, pages 3-24, Springer.
    12. MANO, Yukichi & ARIMOTO, Yutaka & Nguyen, Duy Can & Do, Van Hoang & KOJIN, Emi & Nguyen, Thiet & TSUKADA, Kazunari & Vo, Hong Tu, 2023. "Nutrient deficiencies and compositional variability in fertilizers : The case of the Mekong Delta in Vietnam," Discussion paper series HIAS-E-129, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    13. Takeshi, Sakurai, 2015. "On the Determinants of High Productivity Rice Farming in Irrigated Areas in Senegal: The Efficiency of Large Compared with Small-Scale Irrigation Schemes," Working Papers 105, JICA Research Institute.

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