OBUNDE, Collins Kamire

OBUNDE, Collins Kamire

Student Bio

My name is Collins Kamire. I went to M.A Mbita Academy for my K.C.P.E, Machakos School for my K.C.S.E and Technical University of Kenya for my undergraduate in Statistics. I grew up in Nairobi and have been a statistics enthusiast for as long as I can rember

Project Summary

Project Title: Modelling Determinants of Household Access to Credit in Rural Kenya

Project Abstract

The provision of credit has been considered as a stimulus to economic growth in the global economy. The improvement in access to credit services to households is seen as a method to alleviate poverty and better the well-being of rural households around the country. Financial services are mostly used by households to expand or start new businesses and cushion themselves from various income shocks. The investigator aimed to explore the various determinants of rural household access to credit through a multinomial probit, probit and tobit models, given the robustness of the data. The study also established how these determinants affect the access of credit by rural households. The study determined that those who have attained some level of education have a higher likelihood to access credit through a formal source as compared to individuals with no education in rural areas. It was also established that persons with low levels of education tend to access informal sources of credit more than the formal ones. The study additionally established that married couples borrowed more than un-married individuals.