THE RELATIONSHIP BETWEEN CREDIT RISK MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF SACCOS IN NANDI COUNTY, KENYA
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The purpose of this study was to find out the relationship between credit risk management practices on financial performance of SACCOs in Nandi County, Kenya. The data of this study was gathered using a close ended questionnaire which was administered to a sample of 105 SACCO officers from a population of 105 SACCO officers in Nandi County. The sample was purposively selected. One hundred and two questionnaires were returned making a 97% return rate. The researcher used both descriptive and inferential statistical techniques during analysis. The study found that the implementation of credit policies was excellent as the average mean was 3.53. The study also found that the implementation of credit scoring was good as the average mean was 3.436. The study also found that the implementation of credit administration was good as the average mean was 3.415. The study also found that the implementation of credit monitoring was good as the average mean was 3.488. The study found that there was a positive significant relationship between credit risk policies, scoring, administration and monitoring and financial performance (sig = 0.000, 0.000 and 0.002 respectively. Credit policies, scoring, administration and monitoring of the SACCOs in Nandi County have a positive and significant relationship with financial performance. The study, therefore, recommended that SACCOs should use the existing credit policy and should improve on implementation credit risk management practices.
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