Assessing Barriers that Influence Youth Access to Finance for Agribusiness Ventures in Kenya

This study sought to assess barriersthat influence youth access to finance for agribusiness ventures in Kenya. The study was guided by two specific objectives; to analyse the level of access to credit by youths for agribusiness ventures and to establish the factors influencing Access to financial services by youth agribusiness owners. The study was anchored on credit access theory. A Descriptive research design was adopted in this study and the sample size of the study included 100 registered and randomly selected agribusiness groups in Kiambu Countyin Kenya. Self-administered questionnaires were distributed among the youths selectedfrom various Sub Counties of Kiambu County. The study adopteddescriptivestatistics for analysis of raw data, which included mean, percentages; frequencies whereas chi squares and cross tabulation analysis were usedas the main inferential data analysis and processing techniques. The study found that there is generally low access to credit by youths in agribusiness ventures irrespective of the value chain node their business venture was affiliated to. The study also established that a number of factors influenced access to credit facilities by youth in agribusiness such as cost of credit which was pegged on the interest rates charged on credit, pre-requisite conditions laid down by the lenders and requirements needed to access credit such as availability of collaterals, grace periods provided by lenders, membership to a group, the type and size of the agribusiness one is involved in. The type of loan needed by a particular agribusiness also was a factor considered by lenders. The study recommends that financial institutionsshould consider venturing into innovative financing for unique agribusiness ventures; exploring models of finance that embed de-risking mechanisms to enhance access, fixing affordable interest rates charged on credit as well as optimize conditions and requirements needed to access credit such as low penalties for default,