Influence of Access to Credit on Milk Productivity Among Small-Scale Dairy Farmers in Njoro Sub-County, Nakuru County

Abstract

This study examined the influence of access to credit on milk productivity among small-scale dairy farmers in Njoro Sub-County, Nakuru County, Kenya. A total of 120 respondents were chosen using simple random and proportionate sampling methods. Descriptive statistics determined the frequencies and percentages of credit access, amounts borrowed in Kenyan Shillings (KES), and the purposes of borrowing. The findings revealed that 57.5% of small-scale dairy farmers had access to credit, with the majority (60.9%) borrowing through table banking via farmer groups. Most farmers (40%) borrowed between KES 10,000 and KES 20,000, mainly to purchase animal feeds, which accounted for the largest share of credit utilization (40%), followed by parasite and disease control (19%). Simple linear regression revealed a significant positive relationship between credit access and milk productivity (p < 0.05). The scope for credit is broad, but the capital actually obtained remains inadequate for large-scale investment. Significantly, “table banking” by farmer groups emerged as the main driver of credit accessibility. The analysis highlights feed costs, disease management, and parasite control as the most crucial financial burdens from the perspective of operational constraints. However, there is a strong latent demand for breed improvements to increase output. The study recommends that table banking should be formalized and scaled up among farmer groups for optimal productivity. Policy interventions should also prioritize subsidies for high-quality feeds, for resilient dairy breeds, and for strengthening localized veterinary extensions to reduce the costs of disease and parasite management.