FACTORS INFLUENCING SAVING BEHAVIOUR AMONG COFFEE FARMERS: A CASE OF MANYATTA SUB-COUNTY, EMBU COUNTY, KENYA
David M. Njamweah - Master of Arts in Project Planning and Management, University of Nairobi, Kenya
Prof. Harriet Kidombo - University of Nairobi, Kenya
ABSTRACT
The main purpose of this study was to establish factors influencing saving behaviour among coffee farmers in coffee cooperative societies in Kenya; a case of Manyatta Sub-county, Embu County. The study was guided by the following objectives; To determine how farmers income level influence saving behaviour among coffee farmers in coffee cooperative societies in Manyatta Sub-county; To establish how governance in coffee societies influence saving behaviour among coffee farmers in coffee cooperative societies in Manyatta Sub-county; To examine how farmers financial education influence saving behaviour among coffee farmers in coffee cooperative societies in Manyatta Sub-county and to establish how individual future expectations influence saving behaviour among coffee farmers in coffee cooperative societies in Manyatta Sub-county. The study embraced descriptive survey designed and target a population of 12,340 registered farmers in three coffee cooperatives and 44 employees. Based on the population size under consideration; 6,045 registered members(farmers) in Gakundu FCS the corresponding sample size are at least 357, New Kapingazi (1150) at 278 and Kibugu FCS ltd (5145) at 357, with a 95% confidence level and 5% percent margin of error. The study captured the entire population of employees which was 44. Therefore, the study interviewed a total sample size of 1036 respondents. Stratified random sampling was used in this study to identify the participants as it gives everyone in the population an equal chance to be selected as part of the sample that was ultimately used. Data was collected using structured questionnaires and interview schedules and generated both qualitative and quantitative data. Quantitative data was coded and entered into Statistical Packages for Social Scientists (SPSS Version 21.0) and analysed using descriptive statistics. The study found out that individual future expectation influenced savings behaviour among coffee farmers in coffee cooperatives societies most with 723(100%), followed by governance in coffee cooperatives 715(99%), then farmers financial education 707(98%) and lastly farmers income levels 679 (93%). The study concludes that most of the respondents saved one way or the other be it formal or informal. Their trust in financial institutions played a major role too in where they saved. Many of the respondents believed that their individual expectation, income level and financial literacy levels played a critical role towards their savings behaviour. The study recommends that there is a still need for coffee cooperatives continue providing financial literacy programs which can encourage the respondents to save.
