dc.contributor.author | Kipkemboi, Joseph M | |
dc.date.accessioned | 2014-01-10T07:07:26Z | |
dc.date.available | 2014-01-10T07:07:26Z | |
dc.date.issued | 2013 | |
dc.identifier.citation | Kipkemboi Joseph Maritim (2013). Relationship Between Credit Risk Management Practices And Financial Performance Of Micro Finance Institutions In Kenya. Master Of Business Administration | en_US |
dc.identifier.uri | http://hdl.handle.net/11295/62807 | |
dc.description.abstract | The study sought to establish the relationship between credit risk management practices and
financial performance of MFIs in Kenya. The main objective of the study was to establish the
relationship between credit risk management practices and financial performance of MFIs in
Kenya. The specific objective was to identify the credit risk management practices adopted by
MFls in Kenya. A survey of all licensed MFIs in Kenya was conducted for the purposes of
collecting relevant data in order to form a conclusion on the study objectives. Questionnaires
were administered among selected employees of the licensed MFIs in Kenya. The study used
SPSS as a statistical tool for analyzing quantitative data. Regression analysis was utilized to
determine the relationship between credit risk management practices and financial performance
of MFIs. Correlation analysis was then used to determine the strength of the relationship
between credit risk management practices and financial performance of the MFIs. ANOVA
was also done to test the hypothesis that several group means are equal in the population by
comparing the sample variance estimated from the group means to that estimated within the
groups. The findings of the study indicated that there was a positive relationship between credit
risk management practices and financial performance of MFIs. The study also established the
CRM practices adopted by MFIs in Kenya which included loan securitization, credit limits and
group lending. These finding were informed by results which indicated that MFIs have put in
place effective CRM practices. The study recommended that MFIs continue improving on their
CRM practices such as group lending, loan size limits, securitization and standardized loan
term. The researcher suggests that a study be done on the correlation between micro finance and
traditional bank strategies in light of micro finance institutions in Kenya. A research also needs
to be done to establish the crucial aspects of ensuring sustainability of micro finance industry in
Kenya. For the purposes of tightening loan default controls, the researcher recommends that a
study be done to determine whether the age of the borrower has some influence on the
likelihood of the client defaulting on repayment of their loans. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.title | Relationship Between Credit Risk Management Practices and Financial Performance of Micro Finance Institutions in Kenya | en_US |
dc.type | Thesis | en_US |