Abstract
To enhance the efficiency and performance of cooperative societies, there is a need to improve the affordability and access to financial products and services for the cooperative societies. However, in developing nations, limited studies have been carried out to assess the factors undermining the financial inclusion of cooperative societies. To uncover constraints and entry points for improving the financial inclusion of farmers’ cooperative societies, this study analyzed responses from two hundred and forty respondents selected through a multi-stage sampling procedure. Frequency, mean, t-test, binary logit regression model and exploratory (principal component) factor analysis were used for the analysis. The level of credit access from formal and informal credit institutions showed that majority did not access credit from both institutions. The binary logit regression model of the determinants of credit access showed that variables that were significantly related to formal credit access were distance to access point, collateral, savings, years of existence, hidden charges , repayment period, presence of account officer and financial literacy . It was recommended that farmers’ cooperative societies increase their equity capital by formulating a mechanism that promotes farmers’ cooperative members’ savings and buying of additional shares.
