| dc.description.abstract | The main purpose of the study was to investigate the effect of Credit policies on the financial
performance of deposit taking Saccos in Kenya. The study is significant to the management and
members of the deposit taking Saccos and also the government as it will be able to sensitize the
Saccos on the impact of the Regulatory Authority policies to their financial performance and
facilitates them to develop and implement effective strategies to comply with the regulatory
authority policies.It also provides a background to researchers who may want to carry out further
research. The researcher used a census approach for the six deposit taking Sacco in Kenya to get
the data required. The main way of getting information was through secondary data from the
central bank of Kenya and the individual institutions. The findings indicated a positive
significant relationship (r=0.199) implying that regulatory authority policies affects the financial
performance of deposit taking Saccos with a minimal effect since there are other more factors
that affect financial performance with a greater effect. The result of the regression analysis
indicate that the dependent variables are both individually and jointly significant and have an
effect on financial performance. From the values of the coefficients we discern that the
independent variables are correlated to the dependent variable.The results indicated that credit
standard policy significantly affects financial performance. (β=47.9, pvalue=0.48), credit terms
by (β=-86.5, p-value=0.123) and collection effort by (β=-129.5, p-value=0.383). In conclusion,
the study established that the three independent variables significantly affect financial
performance. From the study, it is recommended that deposit taking Saccos organizations should
not concentrate so much on the regulatory authority policies but also other factors since even
though the policies affect deposit taking Sacco’s financial performance. | en_US |
