The Effect of Credit Risk Management on Loans Portfolio Among Saccos in Kenya
View/ Open
Date
2013-11Author
Essendi, Lillian K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The provision of credit facilities is the core function of every savings and credit co-operative
society. The credit management function facilitates efficient management and administration of
the SACCO loan portfolio in order to ensure equitable distribution of funds and to encourage
liquidity planning.
Many researchers have attempted to answer the benefits of credit management, however it has
remained unclear for the Saccos’ management on the effects of credit risk management on the
loans portfolio. The purpose of this study was to examine the effects of credit risk management
on the loans portfolio among Saccos licensed by Sasra in Nairobi County.
Descriptive research design was used with a target population of 106 licensed Saccos from which
a sample of 35 Saccos was identified from Nairobi County. The study used both primary and
secondary data, primary data was obtained through questionnaires and secondary data from Sasra
reports. Data collected was analyzed using descriptive statistics and regression analysis.
Results indicate that formulation of the credit policy is largely done by members of the
organization and regulation with moderate involvement of employees and the directors. The
existing credit policy of the Sacco is the primary document upon which formulation of new
credit policy is based, trends of creditors and overhead costs are also taken into account in the
process of formulation. Findings further show that CAMEL rating system plays a central role in
the assessment of the soundness of Saccos.
Citation
Essendi,Lillian K.,November,2013.The Effect Of Credit Risk Management On Loans Portfolio Among Saccos In Kenya.Publisher
University of Nairobi College of Humanities and Social Sciences