Effectiveness of Extension Services in Enhancing Outgrowers’ Credit System: A Case of Smallholder Sugarcane Farmers in Kisumu County, Kenya

Abstract

The purpose of this study was to investigate the role of extension services in enhancing effectiveness of out growers’ credit system in Kisumu County, Kenya. The study specifically sought to determine whether public and private extension services play a significant role in enhancing effectiveness of out-growers’ credit system among smallholder sugarcane farmers. A total of 110 small scale farmers were randomly selected for the study. A closed ended questionnaire was used to collect data from farmers. Both descriptive and inferential statistics were used for data analysis. The findings indicated that both public and private extension services were insignificant in enhancing effectiveness of out growers’ credit system. Further, the findings indicated that there was no significant difference between public and private sector in provision of extension services. The findings suggest that for out growers’ credit system to be effective in terms of creation of awareness about credit, accessibility, timely supply of credit, supervision of credit and provision of extension advice on credit utilization, both public and private extension services should be intensified and coordinated to avoid duplication. The results also suggest that sugarcane factory extension division should be strengthened just like in the coffee and tea sub-sectors.