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Feast and Famine: Financial Services for Rural Kenya

Author

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  • Argwings-Kodhek, Gem
  • Kwamboka, Mary
  • Karin, Francis

Abstract

The paper gives a brief description of the history and main institutional forms in the agricultural and rural financial services sector–commercial banks, the micro-finance industry, savings and credit cooperative societies, village banks, building societies and the Agricultural Finance Corporation. It ends by raising some of the issues that need to be addressed as we begin to deal with the institutional and regulatory framework for the subsector including the cost of funds and the array of existing policy and legislative proposals on the table. The main argument of the paper is that we need to step back and undertake a comprehensive assessment of the sector before government passes new laws, or spends public money in unproductive ways. The paper proposes that the agriculture sector ministries should play a leading role in pushing for that comprehensive assessment.

Suggested Citation

  • Argwings-Kodhek, Gem & Kwamboka, Mary & Karin, Francis, 2004. "Feast and Famine: Financial Services for Rural Kenya," Food Security Collaborative Working Papers 55160, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midcwp:55160
    DOI: 10.22004/ag.econ.55160
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    File URL: https://ageconsearch.umn.edu/record/55160/files/wp12.pdf
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    Cited by:

    1. Shiferaw, Bekele & Obare, Gideon & Muricho, Geoffrey, 2006. "Rural institutions and producer organizations in imperfect markets: experiences from producer marketing groups in semi-arid eastern Kenya," CAPRi working papers 60, International Food Policy Research Institute (IFPRI).

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    Keywords

    Agricultural Finance;

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