Volume 10, Issue 4, March 2015, Pages 1238–1244
Njeru Mugambi Duncan1, Dr. Agnes Njeru2, Dr. Florence Member3, and Ondabu Ibrahim Tirimba4
1 PhD Finance Candidate, Jomo Kenyatta University of Agriculture and Technology, Kenya
2 Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
3 Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
4 Department of Finance, Accounting and Economics, Jomo Kenyatta University of Agriculture and Technology, PHD Finance Candidate, Nairobi, Kenya
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
This study sought to explore the effect of Loan Repayment on financial performance of deposit taking SACCOs in Mount Kenya Region. The target population was all the thirty licensed deposit taking SACCOs in Mount Kenya Region, the sampling technique employed was simple random sampling and the sample size was 92 respondents. This study adopted a descriptive survey in soliciting information on effects of Loan Repayment on financial performance of deposit taking SACCOs in Mount Kenya region. Primary quantitative data was collected by use of self-administered structured questionnaires. The researcher also used secondary data derived from the audited financial statement of the SACCOs and the regulator (SASRA). The data collected was analyzed, with respect to the study objectives, using both descriptive and inferential statistics. The researcher concluded that there is need for the regulator to introduce credit policy for the sector, this will help in controlling credit risks among the SACCOs in the sector and reduce credit exposure on guarantors. Currently huge percentage of credit risk is on the guarantors but since the sector is on upward trend on growth, there is need to strengthen the sector by adoption of better and efficient credit management system and will ensure the sector is competitive across the Kenyan financial sector.
Author Keywords: Loan Repayment, Financial Performance, Deposit Taking SACCOs, Mount Kenya Region.
Njeru Mugambi Duncan1, Dr. Agnes Njeru2, Dr. Florence Member3, and Ondabu Ibrahim Tirimba4
1 PhD Finance Candidate, Jomo Kenyatta University of Agriculture and Technology, Kenya
2 Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
3 Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
4 Department of Finance, Accounting and Economics, Jomo Kenyatta University of Agriculture and Technology, PHD Finance Candidate, Nairobi, Kenya
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This study sought to explore the effect of Loan Repayment on financial performance of deposit taking SACCOs in Mount Kenya Region. The target population was all the thirty licensed deposit taking SACCOs in Mount Kenya Region, the sampling technique employed was simple random sampling and the sample size was 92 respondents. This study adopted a descriptive survey in soliciting information on effects of Loan Repayment on financial performance of deposit taking SACCOs in Mount Kenya region. Primary quantitative data was collected by use of self-administered structured questionnaires. The researcher also used secondary data derived from the audited financial statement of the SACCOs and the regulator (SASRA). The data collected was analyzed, with respect to the study objectives, using both descriptive and inferential statistics. The researcher concluded that there is need for the regulator to introduce credit policy for the sector, this will help in controlling credit risks among the SACCOs in the sector and reduce credit exposure on guarantors. Currently huge percentage of credit risk is on the guarantors but since the sector is on upward trend on growth, there is need to strengthen the sector by adoption of better and efficient credit management system and will ensure the sector is competitive across the Kenyan financial sector.
Author Keywords: Loan Repayment, Financial Performance, Deposit Taking SACCOs, Mount Kenya Region.
How to Cite this Article
Njeru Mugambi Duncan, Dr. Agnes Njeru, Dr. Florence Member, and Ondabu Ibrahim Tirimba, “Effect of Loan Repayment on Financial Performance of Deposit Taking SACCOs in Mount Kenya Region,” International Journal of Innovation and Applied Studies, vol. 10, no. 4, pp. 1238–1244, March 2015.
