Abstract

Sarah L. Mango, 1Eric K. Bett, Newton Nyairo

Availability of credit has been applauded as the most important resource for the success of any business venture. In Kenya, Youth enterprise development fund has been extending credit services to youths in chicken business since 2006 as a strategy by the government to create employment opportunities for the youths. However, information on whether this credit facility has increased both income and productivity levels remains scanty and undocumented. The proposed study sought to establish the impact of the fund on both income and the number of chickens raised in Siaya County. Multistage sampling technique was employed to sample both credit and non credit beneficiaries in the study area. Both primary and secondary data were utilized in the study where primary data was collected by semi-structured questionnaire. Propensity score matching with the aid of STATA version 11.0 statistical software was employed to establish whether there was a significant difference between the treated and untreated groups. Results revealed that use of credit had a statistically significance impact on farm income P<0.05 and number of chickens raised P<0.05. The study recommended for awareness creation among youths on the existence of the credit and creation of another microfinance fund to carter for the elderly farmers