Browsing by Author "CINDERELLA NDUTA LOMBARD"

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    EFFECTS OF INTEREST RATES ON AGRICULTURAL OUTPUT IN KENYA
    (Management University of Africa, 2020-06) CINDERELLA NDUTA LOMBARD
    This research work examines the influence of interest rates on Agricultural output in Kenya using Macroeconomic variables; interest rates, and agricultural output. The objective of the study is to explore the extent to which commercial bank interest rates have influenced agricultural output in the country. The specific objectives are; to assess the impact of interest rate on agricultural output in Kenya; to analyze the effect of inflation rates on agricultural output; to analyze the effect of budget allocated on agricultural output and to assess the effects of taxes on agricultural output in Kenya. The strategy adopted for the study was multiple regressions and the F-test; these were used to test the significance of the entire regression plane, and the R2, to test the joint influence of the independent variables on the dependent variable. The finding was that: firstly, interest rates, budget allocated on agricultural output, tax and inflation rates contributed to agricultural output. Secondly interest rates in Kenya are relatively high. Based on the findings above, the following suggestions were made: 1. There is need for financial institutions to increase the amount of loans given to farmers at a lower interest rate. In light of the discoveries and conclusions of the review, policies ought to be put in place to assist the banks relax their level of lending interest rates to farmers. The recommendation is based on the findings that higher interest rates lead to lower agricultural productivity. 2. Policies ought to be implemented to guarantee that the tax rates on agricultural inputs should be relatively lower to reduce the cost of agricultural inputs for the realized output to be more. 3. Also, policies concerning increase in government budget allocation on agriculture ought to be set up in order to increase the agricultural output.