Access to finance and technology adoption paradox: The cases of concentrated solar technology adoption by tea factories run by KTDA in Kenya

Abstract

This study sought to find out the extent to which access to finance could influence the adoption of CSPT by tea factories run by KTDA in Kenya. The study was grounded on the Commercial Financial Instruments for Renewable Energy model authored by Dr Peter Lindlein and Dr. Wolfgang Mostert for the World Bank‘s Initiative, "Financing Renewable Energies in International Financial Cooperation”. The target population was all factory unit managers of the 66 tea factories under the management of KTDA. The study was a cross-sectional survey taking a quantitative approach with descriptive and inferential statistical outcomes. Data collection was done using a structured questionnaire and a binary logistic regression model was used to analyze the data. Access to finance model was found to be statistically insignificant in influencing the likelihood of the adoption of CSPT by tea factories managed by KTDA, with a Chi2 p-value of 0.6253. This led to the conclusion that there is no significant relationship between access to finance and adoption of CSPT among the Kenyan tea factories run by KTDA’. These findings contradict the Commercial Financial Instruments for Renewable Energy model that this study was based on, and the assumption and expectations of policy makers on the importance of access to finance in the adoption of new technologies. Access to financial resources is mostly considered a key initiative for any project, but empirical literature and findings of this study have largely shown that in solar energy technologies adoption projects this is not so.