IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 15, Issue 3 (Nov. - Dec. 2013), PP 25-36 www.iosrjournals.org www.iosrjournals.org 25 | Page Factors Affecting Profitability of Fish Farming Under Economic Stimulus Programme in Tigania East District, Meru County, Kenya Kimathi Antoney Njagi, Ibuathu Charles Njati, Guyo Huka S. School of Business and Economics Meru University of Science and Technology P.O Box 972 Meru School of Business & Economics Meru University of Science and Technology P.O Box 972 Meru School of Business & Economics Meru University of Science and Technology P.O Box 972 Meru Abstract: The purpose of this study was to investigate factors affecting profitability of fish farming under Economic Stimulus Programme in Tigania East District of Meru County, Kenya. In 2010, Economic Stimulus Programme was initiated by the Government of Kenya with the aim of encouraging fish farming in the region. The government spent more than 8 millions in fish farming in the district. The study was set to determine the influence of marketing on profitability of fish farming in Tigania East, establish the importance of related extension services on fish farming; determine the host’s community cultural practises that influence fish farming and explore ways in which pond management skills influences fish farming. Many people turned to fish farming as a source of food and income generating activity. However, where adopted as business there were little returns from fish farming. Descriptive research design was employed in the study. The study applied descriptive research design by involving 200 fish farmers within Tigania East district. Stratified random sampling was used to select fish farmers. The study established that respondents were positive about the sustainability and positive impact of fish farming on their lives. Despite the government support fish farmers faced challenges in terms of access to market, access to technical information, predators and inadequate extension services. The study concluded that the Government needs to provide technical capacity building, market accessibility to the practicing fish farmers in their localities. Key words: Economic stimulus, Marketing, Extension services, Management skills I. Introduction And Background To The Study Fishing is one of the oldest economic occupations of mankind and is carried out for subsistence and commercial purposes. In developed countries it is highly commercialized while in developing countries it is mainly carried out for subsistence purposes. Fishing is carried out along all coastlines, in enclosed seas and in inland fresh waters. However, the main fishing grounds of the world are located in the cool waters of Pacific and Atlantic coasts within the temperate latitudes of northern hemisphere. Each account for 40% of the world‟s annual total fish hauls while Indian Ocean account for about 4%. Aqua culture account for about 15%. According to Food and Agriculture Organisation, (2008) throughout the centuries fish has been an important component of the population‟s diet in many parts of the world. Fish catches increased rapidly over the past hundred years due to improved technology, which provided more powerful engines and sonar equipment. This led to over fishing and caused a worldwide decrease in wild stocks. As a result, the growth in fish catches stopped some 20 years ago. The need to increase fish production by farming became therefore an urgent matter. According to FAO (2007), top producers of aquaculture are China, India, Viet Nam, Indonesia and Thailand. China, with one-fifth of the world's population, accounts for two-thirds of the worlds reported aquaculture production. China's 2005 reported harvest was 32.4 million tonnes, more than 10 times that of the second- ranked nation, India, which reported 2.8 million tonnes (FAO, 2009). Since 2002, China has been the world largest exporter of fish and fish products. In 2005, exports, including aquatic plants, were valued at US$7.7 billion, with Japan, the United States and the Republic of Korea as the main markets. In 2005, the total number of fish farmers 33world-wide was about 12 million with China reported 4.5 million people employed full time in aquaculture. In the past, fish culture in China has been a family business with traditional techniques passed from generation to generation. However, in the late 1960s the Chinese government began a move to the modern induced breeding technologies such that fish grow rapidly and has a high feed conversion rate, which has resulted in a rapid expansion of freshwater aquaculture in China Weimin et al (2007). Aquaculture was introduced to Sub-Saharan Africa in the 1950s with main objectives of improved nutrition in rural areas, generation of additional income, diversification of activities to reduce risk of crop failures and the creation of employment in rural areas (Hecht, 2006). About 43% of the African continent is assessed as having the potential for farming tilapia, African catfish and carp (Ridler and Hishamunda, 2001). Though aquaculture has grown strongly in most regions of the world where the potential exists, it has not done