| dc.description.abstract | Economic reforms have been sweeping the whole world affecting Europe, Africa and
other parts of the world. Such reforms have created a fundamental change in the
environment in which firms operate. An obvious manifestation of such changes is
the liberalization of trade. Such liberalization meant that cooperative societies had to
contend with the unbearable competitive pressures. This study set out to document
the responses of Afya Cooperative Society to non-performing loans. The objective of
this study was to highlight the causes, effects and responses of Cooperative Society
Limited to non- performing loans. A case study approach was used to get an in depth
insight of the study. Primary data was collected and closed ended questionnaires
were used. The collected data was analyzed and interpreted in line with the objective
of the study. The research findings showed the importance of management in
responding quickly to non-performing loans since granting of loans is the core
business of the cooperative. The existence of too many non-performing loans affects
the performance and survival of the organization. By undertaking various strategic
responses Afya Cooperative Society was able to tackle the problem of nonperforming
loans. Such responses include upgrading of Information Technology
systems, training of staff, offering proper incentives and pursuing a legal and
legislative framework to counter unfair completion. Marketing practices were also
found to be important in releasing relevant information to clients and market the
societies‟ products. In conclusion, for an organization to be able to be viable in a
liberalized economy, it has to critically take into account internal and external factors
on a continual basis and be proactive in responding to unforeseen and foreseen
threats and capitalize on its strengths due to increasing competition in the global
market. | en |
