Determinants of Choice of Financial Institutions for Transport Entrepreneurs in KISII County

Abstract

The purpose of the study was to investigate the determinants of the choice of financial institutions for transport entrepreneurs. This was necessitated by numerous reports suggesting that despite the presence of many financial institutions, it has been very challenging to know the determinants of the selection of financial institutions for transport entrepreneurs considering that financial access has improved tremendously. The study, therefore aimed at finding out the determinants of the choice of financial institutions for transport entrepreneurs. This study was based on diffusion of innovation theory by Rogers (1962). Explanatory research design was used in this study. The study targeted 12 transport SACCOS that had 10 vehicles minimum each. The study sought entrepreneurs of those vehicles and targeted 2 managers of reputable financial institutions. Since the target population was small and manageable, census method was used to select the entire population. Questionnaires and document checklist was used for data collection instruments. To establish reliability of research instruments the Cronbach's coefficient alpha model was used.Descriptive statistics involved the use of frequency, means, tables, and percentages. Inferential statistics involved the use of regression analysis to assess the strength and association of the variables in the study. The findings revealed that there is significant correlation of 0.7 between choice of financial institution and the services offered by financial institution to entrepreneurs.