Credit Risk Management and Performance of Loan Portfolios among Saccos in Kisumu County, Kenya
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Date
2017
Authors
Toroitich, Jerop
Omagwa, Job
Journal Title
Journal ISSN
Volume Title
Publisher
Globeedu Group
Abstract
The purpose of this study was to determine the effect of credit management on performance of loan portfolios among
SACCOS in Kisumu County, Kenya. The study sought to determine the effect of credit risk identification, risk analysis, risk
monitoring and control and credit approval on performance of loans portfolio among SACCOs in Kisumu
Kenya.Descriptive research design was used. The sample size was 56 credit managers in the deposit taking SACCO’S who
were selected using purposive sampling. Data collected was analyzed using descriptive statistics that will yield tables,
charts, mean and standard deviation that was used to give meaning to the data collected. The study found a positive and
statistically significant effect of credit risk identification, credit risk analysis, credit risk monitoring and credit approval
on performance of loan portfolios of the SACCOs studied. Hence, the study concludes that much effort should be directed
to credit risk management to achieve improvement in performance of the loan portfolios. The study therefore
recommends that all SACCOs understudy should identify their credit risk, perform credit risk analysis, perform credit risk
monitoring and control and perform approve credit so as to improve their loan performance. The Study finally suggested
further studies on the credit risks management on performance of loan portfolios among banks in Kenya.
Description
Research Article
Keywords
Credit risk management, Performance, Loan portfolio, SACCO
Citation
The International Journal Of Business & Management Vol 5 Issue 11 November, 2017