| dc.description.abstract | The general objective of the study was to analyze the effect of credit risk management practices on the financial performance of SACCOs in Kisii County while specific objectives focused on the effect of credit policies, client appraisal methods, collateral substitutes and the credit risk monitoring methods on SACCOs in Kisii County. The study was guided by Modern portfolio theory, Capital Asset Pricing Model Theory and Arbitrage Pricing Theory. Descriptive survey research design was used with a target population of 106 active SACCOs with 424 executive committee members and 318 credit officers. A sample size of 32 SACCOs (two respondents per SACCO) was selected through probability sampling using proportionate stratified sampling followed by purposive sampling. The questionnaire was formulated with both open ended and close ended questions based on the objectives of the study. Secondary data was collected from SASRA reports and internal financial statements. Quantitative data was analyzed using Statistical Package for Social Sciences (SPSS) version 23 while qualitative data was analyzed using observational and narrative analysis techniques. The research hypothesis was tested using ANOVA which indicated that the independent variables; credit policy, client appraisal, collateral substitutes and credit monitoring were statistically significant in predicting the financial performance of SACCOs where F= 4.841 and P=.0005. The study concluded that SACCOs in Kisii County need credit risk management to prevent their recession. The study recommended for universal credit policies to the SACCOs, more training on client appraisal, collateralization and credit monitoring, restructuring and supervision of all Matatu SACCOs by the ministry. | en_US |
