In Kenya, only less than 10% of farmers’ access formal credit despite the availability of suitably priced loan products specific to the sector from commercial banks. Literature suggests low demand of formal agricultural is a result of self-exclusion, as evidence shows clients from the sector acquire credit from other expensive informal sources. Financial literacy was hypothesized to affect alignment of credit needs to individual credit needs and presumed to affect credit access. The study used a descriptive research design, adopting a cross sectional survey strategy in data collection to investigate credit access from commercial banks by dairy farmers. Questionnaires were issued to a sample of 384 respondents drawn from 21,576 dairy farmers. Data analysis was done using doublehurdle model which assumed participation and consumption as two sequential steps necessary for credit access. analyzed using normal Probit, and truncated Tobit models respectively. Findings revealed that financial literacy had a significant effect on credit access. Based on findings, the study recommends for acceleration of financial literacy programs to impart recipients with to enhance access of formal credit by small holder farmers.