Dividend Payout by Agricultural Firms in Kenya [An Empirical Analysis of Firms Listed on the Nairobi Security Exchange]
Calistus Wekesa Waswa, Fredrick W.S. Ndede, Ambrose O. Jagongo

Abstract
Agriculture has been a major source of the country’s food security and a stimulant to off-farm employment yet agricultural production remained on decline. Most firms in the agricultural sector have performed below shareholder expectations which have led to shareholder apathy and have contributed to the decline of the rural economy due essentially to unstable and low dividend payout. This research is an attempt to analyze the determinants of dividend payout of Kenya Agricultural sector. It also focused on identifying whether various factors available as per literature influence dividend payout ratio in Agricultural sector in Kenya in existing scenario or not. Statistical techniques of correlation and regression were used to explore the relationship between key variables. Thus, the main theme of the study was to identify the various factors that influence the dividend payout policy decisions of Agricultural firms in Kenya listed on Nairobi Securities exchange. The objective of the study was achieved by adopting panel data estimation technique using multiple regressions because it is the best method to use when dealing with micro-units in the economy. Data analysis was carried out using the Statistical Package for Social Scientists (SPSS) version 17.0. The results show positive relationships between dividend payout and liquidity and profitability. The results also show negative associations between dividend payout and firm’s growth, Firm size and leverage. These results are consistent with the prediction by many authors.

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