Financial Factors, Financial Literacy and Coffee Output among Smallholder Coffee Farmers in Kenya
Year: 2024
Type: article
Study design: Observational Study
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.
Authors: Patrick Nyatete Kenyanya, Dominic Ndegwa
Institution: KCA University
Language: English
Subfield: Safety Research
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4404641261