The effects of farmers’ access to, utilization and repayment of agricultural credit on household gender relations: a case of Luwero and Nakasongola Districts, Central Uganda

Abstract

The study investigated how farmers’ access to, utilization, and repayment of agricultural credit from VEDCO affected household gender relations in Luwero and Nakasongola districts, Central Uganda. Using the Sustainable Livelihoods Framework and the Bargaining Model, it employed a mixed-methods approach with surveys containing both open-ended and closed-ended questions. The research pursued three objectives: identifying gender-specific challenges and opportunities in accessing, utilizing, and repaying agricultural loans; evaluating the agricultural loans’ influence on household gender relations; and exploring alternative repayment strategies employed by male and female farmers. Findings showed that both men and women experienced few difficulties in accessing, utilizing, and repaying VEDCO loans, primarily because agricultural loans were channeled through well-established farmer groups with flexible terms. Comprehensive training in financial management, provision of tractor loans, and gender sensitization workshops further eased access, utilization, and successful repayment of agricultural loans for both genders. Loan access markedly improved gender relations within households. Couples increasingly made decisions jointly, which reduced domestic violence and enhanced marital harmony. Many husbands shared domestic tasks and transferred income-generating assets such as dairy cows and banana plantations to their wives, while wives contributed more to school fees and household expenses. Widows and separated women gained notable economic independence, enabling them to cover daily needs and children’s education. Gender differences persisted in repayment strategies, with men drawing on larger asset bases for diversification and women adopting low-cost innovations due to limited resources. Strong networks connecting farmers, households, communities, NGOs, and government programs reinforced equitable environments through collective initiatives. Despite these gains, ongoing disparities in land ownership, asset control, market access, and women’s time poverty underscore the need for continued targeted interventions. The study concludes that well-designed agricultural credit, delivered through organized farmers’ groups and supported by training and sensitization, holds strong potential to advance gender equity, provided structural inequalities are systematically addressed. Recommendations advocate enhancing gender-responsive credit mechanisms, promoting intra-household equity via workshops, diversifying livelihoods for repayment resilience, integrating theoretical frameworks into policies, advancing mixed-methods research, and enacting urgent reforms for gender-inclusive financing.