Abstract: The Kenyan SACCO business plays a key role in contributing to the country’s savings that has boosted social development and the economy. Co-operative societies in Kenya may be traced to the pre-independence times with initiation of development in the time immediately after the country gained independence. Most SACCOs in Kakamega begin and fail to reach the breakeven point and thus end up closing down. It is against this backdrop, that this study sought to interrogate the effects of internal factors as far as growth of SACCOs in Kenya is concerned, particularly those within Kakamega County. The aim of the study was to establish the effect of loan portfolio management on Sacco performance. Descriptive research design was applied in the study whereby census was used for the whole chosen population. The 52 active SACCOs found in Kakamega County formed the target population; focusing on 156 respondents. Stratified random sampling was applied to select 111 respondents comprising of CEOs/Top managers, finance officers and Sacco accountants. Questionnaires having closed ended questions relating to the objective were used to collect primary data. Both descriptive and inferential statistics were applied in the study to analyze data from the questionnaires. SPSS version 23 software was used to code and analyze data. Tables were used in data presentation. The study established that loan portfolio management positively affected the on performance of Sacco in Kakamega County. The study recommends that SACCOs need to develop strict and strategic policy guidelines on loan portfolio management (Credit Policy) that would positively determine performance of the institutions (SACCOs) in their day to day operations.
Keywords: Performance, Saccos, Loan Portfolio Management, Kakamega County.
Title: Influence of Loan Portfolio Management on Performance of Saving and Credits Organizations in Kenya, a Case Study of Saccos in Kakamega County
Author: Margaret Faith Wamalwa
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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