Income Level and Access to Financial Services by Rice Farmers in Kenyas National Irrigation Schemes

Access to financial services plays a vital role in agricultural development, yet many smallholder farmers remain excluded from formal financial systems. This study examined the influence of income levels on access to financial services among rice farmers in Kenya?s national irrigation schemes, specifically Mwea, Ahero, Bunyala, West Kano, and Hola. Guided by the Credit Rationing Theory which posits that asymmetric information and perceived borrower risk limit credit access the study employed an ex post facto research design and stratified random sampling to select 388 participants from a population of 13,230. A total of 311 valid responses were analyzed using descriptive statistics, Pearson correlation, and regression analysis. Results revealed a statistically significant and moderately strong positive correlation (r = .638, p = .001) between income level and access to financial services. Regression analysis showed that income level accounted for 35.9% of the variance in access (R? = 0.359), with a significant beta coefficient (? = 0.398, p < 0.001). These findings suggest that higher income enhances the ability of farmers to access credit, savings, insurance, and related services. The study recommends that financial institutions develop income-sensitive financial products, while government and development agencies prioritize strategies to improve household incomes and reduce credit constraints in rural areas.