Land Titling Attributes and Strategic Credit Access among Smallholder Farmers in Migori County, Kenya
Abstract
Land titling reforms in Kenya have not translated uniformly into formal credit for smallholder farmers, which raises the question of which attributes of a land title lenders actually reward. This study examined the influence of security of tenure, collateral value, formalization of title and transferability on strategic credit access, defined as obtaining a loan from a regulated formal lender, among smallholder farmers in Migori County, Kenya, and tested whether financial literacy moderates these relationships. It drew on the Resource-Based View, Institutional Theory, Property Rights Theory and Financial Inclusion Theory. A convergent parallel mixed-methods design was used. A stratified sample of 140 farmers was drawn from 215 registered smallholders in three sub-counties, and 120 completed questionnaires were analyzed (response rate 86%); twelve key informants from financial institutions, land administration offices and extension services were also interviewed. Binary logistic regression and thematic analysis were applied. Transferability (OR = 3.140, p = .002) and security of tenure (OR = 2.310, p = .001) were significant predictors of formal credit access, whereas collateral value and formalization of title were not. Financial literacy moderated only the security of tenure relationship (OR = 1.790, p = .006). Interviews attributed the weak effect of title possession to registry delays, consent requirements and thin land markets. Holding a title does not by itself secure credit. Policy should combine registry digitization, faster clearance of encumbrances, alternative collateral products and financial literacy training.
Keywords: Land titling attributes; strategic credit access; financial literacy; smallholder farmers; Migori County
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