Igembe north is categorized as a semi arid agricultural district, with high unemployment, low
incomes and dense population. Agriculture is dogged with uncertainty due to turbulent input and
output prices, weather dependency and non linear relationship between inputs and outputs; hence
financiers have considered the sector as unbankable. Agribusiness has emerged as a feasible way
to channel credit to agriculture because it is less susceptible to the foresaid risks than farming.
Value addition has the ability to create employment, absorb excess labour from agriculture,
enable rural residents to capture more margins from agriculture, hence raising rural income
levels. Despite the existence of microfinance and promotion of value addition, there is limited
value addition and hence producers in the area receive less return from agriculture. Despite the
benefits associated with value addition, what hinders butcheries in Igembe north district from
adding value to their products is not known. This study established whether and why butcheries
in the district add value to their products, characterized and described the systems of value
addition among butchery agribusinesses, determined the socio-economic factors influencing
value addition by butchery agribusinesses, and determined the influence of access to credit on
value addition by butcheries in the district. A census survey of the butchery operators was done.
Data collected was analyzed using descriptive methods, probit and ordered logit models. These
models were achieved through STATA and SPSS statistical packages. The results revealed that
value addition was significantly influenced by age, show coefficients and level of significance
you are alluding to so that the results are verifiable and quantifiable credit use, education and
household size. There is need to review and strengthen policies that will improve access to and
use of credit and educate the society on the importance of agribusiness as a tool for poverty
reduction, employment creation and economic development
