The Conditional Effects of Financial Risk on the Relationship between Infrastructure Financing and Financial Performance of Aquaculture Enterprises in the Lake Region Economic Bloc, Kenya

Abstract

Background: Financing structure for aquaculture aims at promoting and facilitating the availability of capital and its contribution to fisheries financial performance that leads to poverty reduction of aquaculture enterprises in the Lake Region Economic Bloc in Kenya. The purpose of this study is to analyze the effect of infrastructure financing on the financial performance of these enterprises as moderated by financial risk. The problem is, financing aquaculture has been limited because of the financial risk involved and lack of knowledge of how the aquaculture industry benefits the society today, this has made the infrastructure develop slowly in Kenya. Materials and Methods: This study applied a cross-sectional survey research design and purposive sampling technique in collecting data from 248 fishermen and 10 county officers in the fisheries department. The study collected primary data through the interviews and questionnaires hence both qualitative and quantitative data was use in the study. Results: The results indicate that Infrastrucuture. Financing (β=.480,P .000),with R2 .230,F=65.708 P=.000) and FR (β =.391,P=.000) with R2 of .378 and change in R of .148 with F 51.903 P=.000  positively influences Financial Performance. In addition the moderation effect was found to be significant with β .309, P=.000 with R2 of .474 change in R2 .097,F =40.017 P=.000.The moderation model accounts for more variance of 47.4% in FP than the direct effect model at  23% explained by Infrastructure finance. Conclusion: The study informs financial institutions to know the changes in infrastructural  financing requirements specific to aquaculture, sources of financing and ways to increase its availability.