Cooperative Societies Research Articles

Investment Allowance and Financial Performance of Dt-Saccos in Nairobi County, Kenya

Purpose: The main objective of the study was to determine the effect of investment allowance on financial performance of DT-SACCOS in Nairobi County, Kenya. Methodology: This study utilized explanatory research design to investigate the influence of tax policies, including investment allowances, accelerated depreciation, and capital gains tax exemption, on the financial health of Deposit Taking SACCOs in Nairobi County, Kenya. The study used advanced estimation techniques, such as correlation and panel data regression models to estimate the relationship. Results: The study established that investment allowance has a significant negative impact on the financial performance of deposit-taking savings and credit cooperative societies (DT-SACCOs) in Nairobi County. Conclusion: Investment allowances, despite their negative association with financial performance, offer a valuable opportunity for DT-SACCOS to reduce taxable income and optimize investment in growth-enhancing assets. However, this should be balanced with careful planning to avoid potential adverse effects on financial performance.

Effect of Credit Risk Management Techniques on Financial Performance of Deposit Taking SACCOs in Kenya

Financial performance is crucial in the realm of finance. The requirement to explain why two organizations operating in the same environment perform differently is a puzzle, and various financial research works have been devoted to solving this puzzle. Co-operative societies in Kenya are recognized as a significant contributor to national development since their presence can be traced in virtually all sectors of the economy. Although significant progress has been made by the deposit taking SACCOs in Kenya, their performance and sustainability has been debatable. The objective of this research was to assess the effect of financial risk management techniques on financial performance of deposit taking SACCOs in Kenya. The specific objective was to determine the effect of credit risk management techniques on financial performance of deposit taking SACCOs in Kenya. The study was based on Credit Risk Theory. A descriptive survey design was adopted. The population of the study was the 175-deposit-taking SACCOs in Kenya as of 31st December 2022. Due to relative population nature, sampling was not conducted and therefore the study was a census. The respondent was the risk manager of each deposit-taking SACCO. The study utilized primary data. The data was collected using a structured questionnaire. Data was analyzed using descriptive statistics such as the mean and standard deviation and inferential statistics which included correlation and regression analysis. Reliability tests were conducted on the variables each meeting the 0.7reliability threshold with validity tests being confirmed by the Bartlett’s test that confirmed validity of the variables being measured. The regression analysis revealed significant insights into the relationship between financial risk management techniques and the financial performance of deposit-taking SACCOs in Kenya. Credit risk management techniques were found to have a positive impact on financial performance with a regression coefficient of β = 0.238 and a significant value of P <0.005. In conclusion, the study provides compelling evidence of the importance of comprehensive risk management frameworks in driving the financial performance of deposit-taking SACCOs in Kenya. By implementing effective risk management practices tailored to address credit risk, SACCOs can enhance their stability, profitability, and resilience in a dynamic operating environment. These findings have significant implications for policymakers, practitioners, and stakeholders in the SACCO sector, highlighting the need to prioritize investments in risk management capabilities to promote sustainable financial growth. The study recommended that SACCOs should focus on enhancing their credit risk management frameworks. This can be achieved by implementing robust credit risk assessment mechanisms, such as comprehensive credit scoring models and regular analysis of customer credit histories.

Relationship Marketing and Customer Loyalty among Deposit-Taking SACCOS in Western Kenya

Deposit-taking Savings and Credit Cooperative Societies (SACCOS) in Kenya have faced significant challenges due to intense competition and declining customer numbers, which underscores the need for further investigation into relationship marketing strategies. A key research gap is the role of digital platforms in moderating the effectiveness of these strategies and their impact on customer loyalty. This study aimed to evaluate how digital platforms influence the relationship between relationship marketing (RM) and customer loyalty among SACCOs in Western Kenya. Using Relationship Commitment, Social Exchange, and Commitment Trust theories, the research focused on 23 SACCOs with 37,137 customers and surveyed 396 respondents, including prior pilot study. Descriptive and correlational research designs were used, with data collected via self-administered questionnaires and systematic sampling. Analysis with SPSS assessed validity and reliability, employing descriptive statistics and inferential methods such as Pearson’s Correlation, Simple Linear Regression, and Hierarchical Regression Analysis. Assumption tests confirmed that the research data met normality, linearity, homoscedasticity, and multicollinearity criteria, with a response rate of 87.63% and significant correlations (p<0.05) among variables. Digital Platforms were found to contribute significant moderating role on the link between Relationship Management and Customer Loyalty (p<0.05), emphasizing features like interactivity, personalization, and trustworthiness. The results suggest that in order to enhance customer experience, SACCOs should allocate resources towards the development of user-friendly digital platforms, utilize data analytics in targeted marketing efforts, so as to enhance engagement with the community via online channels. Moreover, it is crucial for SACCOs to prioritize personalized service, establish trust, and strive for continuous improvement, while taking into account regulatory revisions, in order to maximize the effectiveness of digital platforms within the financial sector.

Bird-View Exploration of Internal Controls and Financial Performance of Selected Savings and Credit Co-Operative Societies in Moyo District, Uganda

This article explores internal controls and financial performance of selected savings and credit cooperative societies in Moyo district, Uganda. Utilizing both qualitative and quantitative methodologies, a descriptive cross-sectional research design was employed. The population consists of 56 participants. Data was collected with surveys and interviews. Findings revealed that internal controls are the pillar of any financial institution and SACCOs are not excluded and good financial performance is the motive for having good internal controls implemented in the SACCOs. In spite of the role played by internal controls, SACCOs have continued to face challenges relating to liquidity, profitability, efficiency; in terms of cost per borrower, and alleged malpractices. The above challenges could be attributed to weak internal control system, as this sets a base for misappropriation of organization’s resources. It is on this note that the study calls for the implementation of a systematic risk assessment process that identifies, assesses, and mitigates risks. Regularly update risk assessments to adapt to changing circumstances. More so, there is need to maintain effective internal control communication and proper flow of information down, across, and up within all sections of the organization. This includes clear communication of roles and responsibilities. Invest in continuous training and education for SACCO staff and members to ensure they have a strong understanding of internal controls, ethics, and risk management. Develop and regularly update comprehensive policies and procedures that clearly outline internal control processes, responsibilities, and expectations. This can serve as a guide for staff and members and ensure consistency in control activities. Keywords: Credits, Cooperative societies, Financial performance, Internal controls, Savings.

From “Grass to Grace”: Maasai Kajiado Women Dairy Co-operative Society’s Milk for Sustainable Livelihoods in Drylands

From “Grass to Grace”: Maasai Kajiado Women Dairy Co-operative Society’s Milk for Sustainable Livelihoods in Drylands

Development and implementation of an integrated food commodities reservation and management system for the Kasu Majlis cooperative society using structured approach

This paper presents the development and implementation of an integrated food commodities reservation and management system for the KASU Majlis Cooperative Society. Developed using PHP and MySQL within the XAMPP environment, this web-based system addresses inefficiencies in the existing manual process, thereby enhancing operational efficiency and member satisfaction within the cooperative society. This research identifies key challenges, such as delays and inaccuracies in processing requests and inventory management. In response, an automated system has been developed to modernize these processes. The key features include user registration, reservation tracking, and inventory management. The system allows users to confirm their details, view available commodities, reserve items online, check costs, and print reservation forms with email notifications sent upon request submission. These features ensure convenience, transparency, and efficiency. The system was designed using the waterfall model because of its simplicity and ease of implementation. Comprehensive testing was conducted to validate the reliability and performance of the system. The results from the implementation show significant improvements in request-handling accuracy and operational efficiency. Feedback from users indicates increased satisfaction owing to the user-friendly interface and timely updates of the system. The successful deployment of this system demonstrates its potential to enhance operational workflow, reduce waiting times, and improve communication between members and executive officers. This study offers a practical and scalable solution to common challenges in cooperative management, providing a foundation for future advancements in automated systems for similar cooperatives or organizations.

Influence of Demographic Factors on Loan Portfolio Quality in the Savings and Credit Cooperatives Societies in Tanzania

This study determined the influence of demographic factors on loan portfolio quality in Tanzania, focusing on the Hazina SACCOS. The sample of the study was 134 out of 423 borrowers from Dar es saalam and Dodoma cities, whose loans did not exceed Tanzanian Shillings 5 millions. Only 100 questionnaire sheets were returned. Out of those, only 75 were correctly filled, hence used for analysis. Data analysis took place through descriptive and regression analysis. The study concludes that demographic factors affected loan portfolio in different ways. While female borrowers had higher loan repayment rates than their male counterparts, younger, employed, business operators and married borrowers repaid their loans earlier than their counterparts, which promoted the loan portfolio quality. Borrowers with higher education and more dependents had a loan repayment challenge, which weakened the loan portfolio quality. Therefore, loan profitability relates with demographic factors. In order to promote earlier loan repayment, hence loan portfolio quality, the SACCOS should offer demographic-centric financial products and support programs. The SACCOS should offer loans to meet the employment diversity, including flexible loan terms to accommodate wage-employed, self-employed and other employed members. Tailored financial counseling, flexible loan terms and practical financial management training could help mitigate the negative impacts observed in the study.

Role of gram-panchayath and water user cooperative society (WUCS) in utilization of MGNREGA scheme in Malaprabha command area

Role of gram-panchayath and water user cooperative society (WUCS) in utilization of MGNREGA scheme in Malaprabha command area

The effect of service concept on customer acquisition: the moderating role of manager’s experience on Savings and Credit Cooperative Societies in Tanzania

PurposeThis study aims to investigate the influence of the service concept on customer acquisition and when the relationship is moderated with manager’s experience in Savings and Credit Cooperative Societies (SACCOS) within Dar es Salaam City, Tanzania.Design/methodology/approachThe study adopts a cross-sectional research design and utilizes simple random sampling to select 226 respondents, all of whom are managers of SACCOS in Tanzania. Data were collected through a questionnaire and analyzed using a partial least square structural equation modeling (PLS-SEM).FindingsThe findings indicate that service concept have a highly statistically significant impact on customer acquisition, with a p-value of less than 0.05. Conversely, managers’ experience also influences customer acquisition by the p-value of less than 0.05. The result also confirms the significance influence of positive moderating effect of manager’s experience on the relationship between service concept and customer acquisition, with a p-value of less than 0.05, therefore it shows that manager’s experience facilitate the influence of service concept to customer acquisition.Practical implicationsThe findings of this study provide valuable insights for SACCOS aiming to thrive and attract more customers. By understanding the nuances of service concepts, these institutions can refine their strategies for customer acquisition effectively.Originality/valueThe study’s insights into the composite effect of service concepts hold significance for SACCOS seeking to enhance their customer acquisition strategies enhanced by manager’s experience. These findings contribute new perspectives to the SACCOS and other related financial services sector, offering fresh insights into innovation and customer-centric approaches.

Influence of Savings and Credit Co-operative Societies in Enhancing Debt Management Literacy among Members in Moshi Municipality, Tanzania

The study explored how Savings and Credit Cooperative Societies (SACCOs) enhance debt management literacy among members in Moshi Municipality, guided by Financial Socialization Theory. Using a convergent design under a mixed methods approach, the target population included nine SACCOs, 13,053 clients, and 20 employees. A sample of 3 SACCOs, 100 customers, and 5 managers was selected through simple random, stratified random, and purposive sampling techniques. Data were collected via questionnaires for customers and interviews for staff members. Validity was ensured by presenting the instruments to research experts, and a pilot test involving 35 participants assessed reliability, with Cronbach's alpha calculated at 0.95, indicating high reliability. The findings revealed that SACCO members generally acknowledge the organizations' role in promoting debt management skills. However, perspectives varied on the effectiveness of the training provided. The study recommended that SACCOs empower members to manage their cash flow better, offering practical knowledge and skills for debt and cash flow management. In conclusion, it emphasized the importance of SACCOs in equipping members with the necessary tools to improve their financial literacy and debt management capabilities.

Microcredit via digital innovation platforms: its drivers and impact on fish farms' yield and income in Nigeria

PurposeFish farmers in Africa often operate on small-scale culture units, primarily due to poor access to funding and low technology adoption. Digital innovation platforms seek to enhance farmers’ access to finance, production and farmers’ income. However, there is a lack of empirical evidence to support these claims. Therefore, this study investigated the factors influencing fish farmers’ access to microcredit from digital innovation platforms and the impact of this microcredit on fish farms’ yield and income in Nigeria.Design/methodology/approachA mixed-methods approach was adopted, and data were gathered from 387 fish farmers through a well-structured questionnaire and focus group discussion. The data were analyzed using probit regression and instrumental variable two-stage least squares regression.FindingsThe results revealed that ownership of smartphones, awareness of digital agricultural innovation platforms, farmers’ education, income, fish farming as a primary occupation, cooperative society and extension contacts positively influenced farmers’ access to microcredit from digital innovation platforms. The age of farmers and household size negatively influenced their access to digital microcredit. Digital microcredit positively and significantly impacted fish farms’ yield and farmers’ income.Practical implicationsDigital microcredit significantly increased fish farm yield and income. Therefore, digital innovation platforms should be encouraged and promoted through the creation of awareness about their ability to solve inadequate financing in agriculture by agricultural extension agents.Originality/valueThis study contributes to our understanding of the influencing factors for farmers accessing digital microcredit and how digital microcredit enhances farm yield and income.

Sacco Based Financial Characteristics and Financial Performance of Deposit Taking Savings and Credit Co-operative Societies in Kenya

In Kenya, Deposit-Taking Savings and Credit Cooperative Societies have faced significant challenges that have adversely impacted their financial performance. While existing literature has linked financial performance to financial characteristics, there remain conceptual and contextual gaps in empirical research. These gaps prompted the current study to examine SACCO-based financial characteristics as a tool for enhancing the financial performance of DT-SACCOs in Kenya. The study employed a descriptive research design, targeting a population of 190 DT-SACCOs. Using purposive sampling, 181 SACCOs that had been operational since 2018 were selected for analysis. Secondary data from the period 2018 to 2023 were utilized, and a quantitative approach was applied to generate both descriptive and inferential statistics. Panel regression was used to estimate the direct relationship between SACCO-based financial characteristics and financial performance, while also appraising how the Sacco Societies Regulatory Authority risk regulations moderated this relationship. The study concluded that capital adequacy had a statistically significant positive effect on financial performance, indicating that stronger capital buffers enhance profitability. In contrast, asset quality and financial investments showed statistically significant negative effects, suggesting that poor loan quality and mismanaged investments negatively impact financial outcomes. Liquidity, however, was positively associated with financial performance, underscoring the importance of maintaining adequate liquidity reserves. Moreover, the relationship between SACCO-based financial characteristics and financial performance was significantly moderated by SASRA risk regulations, highlighting the critical role of regulatory oversight in shaping financial outcomes. Based on these findings, the study recommends that DT-SACCOs in Kenya should: maintain optimal capital adequacy levels to safeguard financial stability; prioritize careful asset quality management and regular loan monitoring to develop sound lending policies; optimize financial investments to ensure sufficient funding for operational expenses; and maintain adequate liquidity levels to meet financial obligations and improve overall performance.

National Sentiments and Regional Flavour- A Socio-economic Study of Huvina Hadagali Jasmine

Background This socio-economic analysis studies the influence of jasmine production on the economic well-being of farmers in Huvina Hadagali, a region known for its high-quality jasmine flowers. The Vijaya Nagara district’s Havina Hadagali area is well known throughout the country for its jasmine flower farming. In addition to being referred to as Mallige Nadu, this location is also known as Malligeya Tavaru. The cultivation of the jasmine flower is protected by the Geographical Indication (GI) Tag, and this flower has been popular in this region for a substantial amount of time. Methods Data was collected from a sample of 364 jasmine growers using a structured questionnaire in Huvina Hadagali, Vijayanagar district. The data focused on different socio-economic factors such as income levels, employment, market access, and agricultural techniques. The study is analysed using IBM SPSS through frequency analysis and 2-step clustering. Result The results demonstrate that the cultivation of jasmine makes a substantial contribution to the local economy, serving as a main or additional source of income for numerous households. Jasmine farming often contributes 40% of the whole household income, and during peak seasons, it provides significant economic advantages. Nevertheless, the highlighted obstacles were volatile market pricing, pest infestations, and limited access to contemporary farming practices. The study emphasises the crucial significance of cooperative societies and local marketplaces in stabilising income and offering essential resources and training to farmers. Conclusion The research highlights the necessity of governmental interventions focused on developing market infrastructure, offering financial assistance, and improving access to agricultural innovations to maintain and augment the economic advantages of jasmine cultivation in Huvina Hadagali.

‘The Store’ Oral History Project

ABSTRACT The Store Oral History Project is a collection of 20 oral histories gathered from members of the Newcastle community in 2019, sharing their thoughts and memories of the Newcastle and Suburban Co-operative Society Ltd, known locally as ‘The Store’. The project builds on existing knowledge about ‘The Store’ that was the biggest and most successful co-operative society in Australia, established in 1898. In 1974, at its peak it operated 15 other retail branches and had 98,000 members and employed 1450 workers. 1 It provided grocery, retail goods, services including a health fund, funeral fund, travel agency. Eventually, increased shopper mobility and competition from suburban shopping centres saw ‘The Store’ close in 1981 after 83 years of service. Closure left a lasting impact upon the community and in the wake of the demolition and renewal of the former Hunter Street site, this project commemorates and celebrates The Store's legacy. This article discusses how the project provided a unique opportunity for a university Library to collaborate with industry partners, the community, employed students and provided Work Integrated learning students’ opportunities to build GLAM sector knowledge and skills. Twenty oral histories are publicly available on Livinghistories@UON. 2 These amplified voices of ‘The Store’ add meaning to existing narratives, as well as the University’s archival holdings of this old Newcastle icon. In 2019, the University of Newcastle (Australia) Auchmuty library embarked on a new project aimed to record stories associated with The Newcastle and Suburban Co-operative Society Ltd, known locally as ‘The Store’, established in Newcastle West, in 1898. The main store building opened in Hunter Street Newcastle, New South Wales, in 1906.

Examining the Internal Controls and Financial Performance of Selected Savings and Credit Cooperative Societies in Moyo District, Uganda

This research study examined the effect of internal controls on financial performance Savings and Credit Co-operative Societies (SACCOs) in Moyo district of Uganda. Utilizing both qualitative and quantitative methodologies, a descriptive cross-sectional research design was employed. The population consists of 56 participants. Data was collected with surveys and interviews. The study’s findings demonstrated that the control environment in the chosen SACCOs in Moyo district had a beneficial impact on financial performance. This is corroborated by the favourable internal control ratings and the highly satisfying view of the accounting and financial system of the chosen SACCOs. And well-constructed control environment has the potential to strengthen the entire governance and administration of SACCOs, resulting in enhanced financial performance. Based on these findings, the study calls for SACCOs to prioritize ethical values in their organizational culture. This includes promoting honesty, integrity, and accountability among staff and management. Ensure that the board of directors maintain their independence from management. This can be achieved by implementing governance structures that prevent conflicts of interest. Continuously adhere to audit standards and best practices to maintain high-quality financial reporting and internal controls. It is equally recommended that SACCOs should conduct periodic internal reviews of control activities to identify weaknesses and areas for improvement. It is recommended that management be tasked with the responsibility of promptly reviewing audit reports and resolving any non-compliance issues identified within them. Keywords: Stewardship, Internal controls, Savings, Cooperative societies, Financial performance.

Impact of SEEFOR-Fadama Project on Poverty Alleviation of Rural Women of Rivers State Nigeria

This study assessed the impact of the SEEFOR project on the poverty alleviation of indigenous women of Rivers State, Nigeria. The socio-economic characteristics of the rural women were described, impact of the project on assets ownership and income of women were assessed and the effect of the project on the rural women’s socio-economic status was determined. A null hypothesis stating that, there is no significant difference in the income of the rural women before and after participating in the project was tested. A multi-stage sampling procedure was employed for data collection. Structured questionnaire was used to collect data from 238 rural women. Both descriptive and inferential statistics were used to analyze the data collected. Results showed that a majority (79%) of the women were farmers, had small enterprises (72.7%), had 11 years of experience, 74% used leased land for business, only 5% had access to a credit facility, all (100%) were members of a cooperative society, 64.7% were co-contributors with husband for family upkeep. There was a positive 48.3% and 44.5% increment in the number of women who owned assets such as a good house and television after the project respectively. It was found that there was a 72.35% increase in the mean monthly income of rural women. Generally, the project improved the living condition of the rural women. The perceived effects of the project on women’s socio-economic status were; increased decision-making power at home (3.88) and improvement in the contribution of children’s education/community development (3.87). The study concludes, that the project has relatively reduced the poverty of rural women in the study area as there was a significant increment (72.35%) in the monthly income of the women. It was recommended that policies should be put in place to enhance women’s access to credit facilities and that more projects designed at alleviating poverty in Rivers State should target rural women

The Role of Savings and Credit Cooperative Societies in Financially Supporting Employed Women in Dar es Salaam, Tanzania: A Case Study of CRDB Workers SACCOS

Savings and Credit Cooperative Societies (SACCOS) are financial cooperatives that aim to meet the financial needs of different population segments, including women, men, or other specified categories. The primary role of these financial institutions is to improve the socio-economic development of their registered members and the community at large. The aim of this study was to determine the effects of SACCOS on women's financial accessibility, specifically focusing on those working with the Cooperative Rural Development Bank (CRDB) in Dar es Salaam. The research was grounded in Agency Theory and Stakeholder Theory. A descriptive research design was employed, and quantitative analysis was performed. A sample of 80 respondents was randomly selected from a population of 1,700 members of the CRDB workers’ SACCOs. The study utilized observation, surveys, and questionnaires. Secondary data sources included newspapers, journal articles, books, SACCO manuals, and authoritative internet sources. Simple descriptive methods were used to present the study's results, while percentages were used to highlight numerical patterns. Quantitative data was analyzed using Excel. The results showed that over 77% of SACCO's female members experienced better socio-economic conditions compared to non-members. The study recognized that quick access to finance through SACCO services significantly improved the standard of living, particularly for women. Although these women work with the bank, SACCO services have enabled them to access more finance than they would typically qualify for through the bank. However, SACCOs face several constraints, including poor management, lack of training opportunities for members, high-interest rates, and societal perceptions of women (segregation). These factors have presented challenges to the performance of SACCOs. The study recommends that members receive training on how to improve the performance of SACCOs to better leverage the services provided. In general, the government should amend and enforce policies related to governance, financial management, and the proper management of accounting and strategies that strengthen SACCOs. This would enhance their ability to support women’s access to finance, leading to improved socio-economic development.

Detection of SARS-CoV-2 on the environmental surfaces and its implications for pandemic preparedness.

Even though death due to COVID-19 is no longer a public health emergency, less virulent but highly transmissible forms of SARS-CoV-2 continue to spread in many countries leading to outbreaks and rise in hospitalizations in the affected regions. Lessons learned during the pandemic must be put into action to protect the world's population from another catastrophe like COVID-19. Novel approaches that were developed for tracking the spread of SARS-CoV-2 included analysis of wastewater, air samples, and various environmental surfaces. We conducted a study in Kuwait during the peak of COVID-19 pandemic to examine if SARS-CoV-2 could be detected in swabs taken from frequently touched environmental surfaces. We selected 12 Cooperative Society Stores-two from each governorate of Kuwait-for collection of surface samples. The Cooperative Society Stores are widely distributed across the whole country and cater to daily household needs including groceries and other essential items. These stores operated even during the "lockdown" imposed at the height of the pandemic. We collected swabs from high-touch surfaces including the handles of the shopping carts and freezers, the elevators, the keypads of the point-of-service terminals of cash counters, and the automated teller machines. All the surfaces tested showed a variable presence of SARS-CoV-2 by reverse transcriptase quantitative PCR, showing the validity of the proof-of-concept study. Monitoring of the presence of SARS-CoV-2 by surface sampling thus offers a cheap but effective means of environmental surveillance for coronaviruses. We therefore strongly recommend the addition of surface environmental sampling as a strategy for pandemic preparedness everywhere.

Comparative analysis of production and marketing aspects of deficit and surplus paddy production areas in Bangladesh

The study aimed to compare production and marketing aspects in deficit and surplus paddy production areas in Bangladesh. For this study, a face-to-face interview was conducted with a semi-structured questionnaire. The survey was carried out in two districts from February to March 2022. Data were collected from a total of 113 paddy farmers from Brahmanbaria, a deficit district, and 128 farmers from Habiganj, a surplus district. According to this study, farmers in surplus districts have excellent geographic characteristics such as medium-high land and a triple crop area, while farmers in deficit districts suffer unfavorable conditions such as low land and flooding. The study also discovered that there are differences between the districts in terms of land availability, paddy cultivation area, and cropping intensity. In production aspects, the size of the farmland and the productivity differ significantly at the 1% level between the districts. Deficit farmers produce less paddy per acre compared to farmers with surplus districts. In the paddy marketing channel, local paddy assemblers (LPA) are the dominant actors in the deficit and LPB/local paddy brokers in the surplus area. Farmers in surplus areas have more marketing facilities and get higher paddy revenue and profits compared to deficit districts. However, farmers in both districts are mostly dependent on traders to sell their produce. In that case, paddy marketing facilities can accumulate through farmers’ community investment and the organization of cooperative societies. It will help improve farmers’ negotiation power at the village level in both districts. Res. Agric. Livest. Fish. Vol. 11, No. 2, August 2024: 173-183

Analysis of Technical Efficiency of Fertilizer Subsidy Program in Coffee Farming, A Case study of Kenya

Fertilizer subsidy program is used to boost productivity by availing fertilizer to farmers at a cheaper price than the market price. This research sought to determine the technical efficiency of fertilizer subsidy program on coffee farming in Kenya. Coffee is a major cash crop of small-scale farmers, which has been experiencing declining productivity. The study adopted non-experimental cross-section research design. The study was carried out in Mukurwe-ini Sub-County, in Nyeri country, Kenya. Structured questionnaire were used to collect primary data from coffee farmers. Stochastic frontier production function (SFA) was used to evaluate the technical efficiency of coffee farming by analysing the relationship between coffee inputs and outputs. The SFA results revealed that fertilizer subsidy has a significant effect on technical efficiency. The technical efficiency for the individual farmers was found to range between 10.44% and 95.15% with a mean of 77.87%. The results revealed that about 76% of the coffee farmers were operating above 70 percent or more technical efficiency levels. Additionally, about 94% of the coffee farmers were operating at a technical efficiency level of above 50%. The coffee cooperative societies had variance in their technical efficiency - Rumukia at 80.65%, Ruthaka at 76.12%, Rugi at 79.97% and Gikaru at 79.24%. Technical inefficiency was found to be significantly influenced by age of the farmers and cooperative societies’ management. The study recommends development of inclusive policies that address income disparities among coffee farmers, improvement of cooperative societies’ management, and enhancing farmers’ trainings