EFFECT OF CREDIT PORTFOLIO ADMINISTRATION ON MEMBER ADVANCEMENT OF LICENSED DEPOSIT TAKING SACCOS IN NAIROBI COUNTY, KENYA

KIBANGA JANE KAARI, NAMUSONGE GREGORY, NJERU AGNES

Abstract


Abstract: This study evaluated the effect of credit portfolio administration on member advancement of licensed deposit taking Saccos in Nairobi County, Kenya. The study adopted a descriptive cross sectional survey design, where both quantitative and qualitative approaches were applied. Questionnaires and semi-structured interviews were used in data collection. Email (internet) and drop and pick methods were also used. Collected data was organized according to the research objectives and hypotheses using statistical package software for social sciences (SPSS). The sample had 39 respondents out of a population frame of 42 participating licensed deposit taking Saccos in Nairobi County. They comprised of the chief executive officers, the deputies and the departmental heads from the sampled licensed deposit taking Saccos. Data was analyzed using descriptive and inferential statistics. Descriptive statistics included mean, standard deviation, frequencies and percentages. Inferential statistics included correlation analysis and regression analysis. The findings established a positive and significant relationship between credit portfolio administration and Member advancement; therefore, justifying the loan portfolio as the primary income generating asset for the Sacco which contributes about 95 per cent of the Sacco gross income. Deposit taking Saccos establish credit programs with the ability to provide numerous credit products which have a tremendous appeal to members. They develop credit policies outlining the rules, procedures and conditions for credit lending by the Sacco. Licensed deposit taking Saccos particularly adhere to the credit portfolio policy to cushion loan delinquencies which affect the stability of funds to the borrowers, and deter them from meeting the primary objective of being an income generating asset for the Sacco.

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References


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