Abstract: Bad loans are one of the key causes of banks breakdown in Kenya commercial banks. The objective of the study was to determine the effect of Credit Policy on non performing loan in commercial banks in Kenya. The study employed descriptive research design where quantitative approach was applied. Data was obtained from 43 commercial banks in Kenya and analysed using SPSS by applying both correlation and regression to show relationship between the variables. The study recommends that Banks should develop credit procedures, policies and analytical capabilities and these efforts should be expanded into full credit management including origination, approval, monitoring and problem management tailored to the needs of each bank.
Keywords: Credit policy, Loan Nonperformance.
Title: Effect of Credit Policy on Non-Performing Loans: Case of Commercial Banks in Kenya
Author: Edah Kavwanyiri, Dr. Shedrack Mbithi Mutua
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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