Non-Credit Services of Group-Based Financial Institutions: Implications for Smallholder Women’s Honey Income in Arid and Semi Arid Lands of Kenya

This paper analyses the effect of non-credit services of joint liability credit institutions on smallholder women beekeepers’ honey income. The non-credit services offered to the beekeepers are mainly enterprise development services (training on marketing, business, production and subsector analysis). The study uses cross-sectional data from a survey of women beekeepers participating in group-based credit programmes; the survey was conducted in September 2005 in Makueni district of Kenya. The findings indicate that the number of enterprise development related trainings attended by women beekeepers that are offered by the group-based financial institutions positively and significantly influence honey income. The results confirm that non-credit services contribute positively to the enhancement of honey income. These results imply that extension and strengthening of group-based financial institutions’ non-credit services in the marginal areas will enhance development of smallholder agriculture for improved income generation.