Effect of Financial Factors on the Profitability of Poultry Farming in Kisumu County, Kenya

Globally, there has been a decline in the profit margin of poultry farmers, with the USA reporting a 23% decline from $3.9 billion generated in 2022 to $3.1 billion in 2023. Similarly, in Ghana, where the poultry industry has been described as a diminishing sector, average productivity in the poultry industry has been virtually flat over the past 5 years, averaging about 0.14% per annum of GDP, presenting an uncertain picture. Despite the interventions put in place by the county government of Kisumu to increase productivity, the profitability of farmers has been declining, thereby discouraging poultry farmers in the region. The study, therefore, investigated financial factors affecting the profitability of poultry farmers in Kisumu County, Kenya. The study adopted a correlational research design and purposive sampling technique. Secondary data was collected using a data collection sheet between 2017 and 2023 from 40 farmers. Results revealed a positive significant relationship between credit financing and profitability of poultry farming with a coefficient of 0.1987 and (R2=0.823, P=0.0002<0.05). The study recommends more involvement of financial institutions in financing poultry farmers and giving them favourable loans to assist them in the acquisition and production of Poultry products.