EFFECT OF CREDIT MANAGEMENT STRUCTURE ON GROWTH OF MICRO-FINANCE INSTITUTIONS

Frederick Wara, Benard Baimwera, Doreen Mutegi

Abstract


Abstract: The purpose of the study was to determine the effect of credit management structure on growth of Micro-finance institutions in Kenya. This study adopted a descriptive research design targeting all DTM extending credit facilities to their clients. The population of study consisted of 13 deposit taking MFIs in Kenya that are members of AMFI while sample size was 100 staff members of the deposit taking MFIs. Primary data was collected using questionnaires where all the issues on the questionnaire were addressed. The sampling technique for selecting the employees was stratified sampling technique. The study confirmed that the relationship between credit structure management and growth of MFIs was statiscically significant. The study concluded that credit management structure was effective in controlling credit risks; however there were inadequate strategies to enhance credit management structure in the organizations. This study recommended that MFIs should improve and include new credit management strategies to enhance growth.

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