INFLUENCE OF FARMER CAPACITY BUILDING IN FINANCIAL MOBILISATION ON PERFORMANCE OF SMALLHOLDER IRRIGATION PROJECTS IN MIGORI COUNTY, KENYA.

Abstract

Irrigation is increasingly being accepted as a precursor to food security, employment creation and
economic development. Irrigation accounts for up to 40% of world food production (Asian
Development Bank [ADB], 2015). The development of 7,800 hectares under irrigation in Lower
Kuja Irrigation Project is an attempt by the National Irrigation Authority to address food
insecurity, unemployment and socioeconomic conditions in Nyatike Sub-County, Migori County
(GIBB Africa, 2011). While the decision to development 7,800 hectares of land under irrigation is
a noble idea that has potential to positively change the standard of living for citizens of Migori
County, it’s important to understand that besides construction of physical infrastructure, other
critical factors can affect achievement of these objectives. Thus, the study sought to assess the
influence of farmer capacity building in financial resource mobilisation on performance of
smallholder irrigation projects in Migori County. The study framed the alternate hypothesis as
H1: There is a significant relationship between farmer capacity building in financial resource
mobilisation and performance of smallholder irrigation projects in Migori County. The study was
based on Resource Based View Theory (1959) by Edith Penrose. The study views Resource Based
View Theory as explaining the importance of resource mobilisation to an organisation’s
performance. The study adopted pragmatism as a philosophy, and used cross sectional and
correlational research design. Using Krejcie and Morgan (1970) Tables, the study selected 341
respondents from a sampling frame listing 2,815 members in 15 smallholder irrigation projects of
Lower Kuja Irrigation Project. The study used systematic random sampling to select the sample.
Data collection was done using the questionnaire and classified using a 5-Point Likert Scale. Data
was subsequently analysed using descriptive statistics (means and standard deviation) and
inferential statistics (Pearson’s regression analysis at p-value of 5% significance level). The study
findings show that personal savings and assets (3.427) is the most preferred source of credit, while
commercial banks (2.988) is the least preferred source. Further, the results show that r = .801, r2= .641, F [5, 331] = 118.405, F critical = [2.2413], p<0.000<0.05. Hence, the study accepted the
alternate hypothesis (H1), and concluded that personal savings and assets, agricultural
cooperative societies, commercial banks, non-governmental organisations, and governmental
organisations have significant influence on performance of smallholder irrigation projects in
Migori County. Consequently, the study recommends that Migori County Government educate
farmers in smallholder irrigation projects on loan facilities by different financial institutions.
Further, the study recommends that the county develop a framework to assist smallholder
irrigation projects to qualify for loans facilities operated by financial institutions. The study also
recommends research on influence of financial resource mobilisation on performance of
smallholder irrigation projects using longitudinal and experimental research design.
Keywords: Critical Factors, Financial Resource Mobilisation, Migori County, Resource Based
View Theory, Smallholder Irrigation Projects.