Horticultural financing lending policies on performance of financing institutions in Kenya

Abstract

Horticultural financing has a large effect on performance of financial institutions in Kenya. The lending policies adopted by a financial institution affect the volume of loan applications that a lending institution attracts. Financial institutions’ horticultural financing lending policies hamper access to horticulture products loans that increase output by improving farming practices. This research was therefore designed to investigate the horticultural lending policies and performance of financial institutions in Kenya. It is on this premise that the researcher sought to establish whether horticultural lending policies affect financial institutions performance in Kenya. The target population of this study was 54 financial institutions comprising 41 commercial banks and 13 registered Microfinance Institutions in Kenya. The study adopted a descriptive cross-sectional survey was adopted. Data was collected through a survey using self-administered questionnaires administered to the heads of credit and credit line managers of the various financial institutions. The data was analyzed using descriptive and inferential statistics. The findings revealed that horticultural financing lending policies positively and significantly (P-Value, 0.00) affect the performance of financial institutions in Kenya. From the findings, lending policies was positively related to the performance of financial institutions in Kenya.