School of Business & Public Management
Permanent URI for this collectionhttps://repository.kcau.ac.ke/handle/123456789/43
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Item Navigating risk: A deep dive into credit risk management practices and loan performance in Kenya's fintech frontier.(IJEFM, 2024) Ondabu, Ibrahim Tirimba.; Kabui, Josphat Njoroge.This study aimed at evaluating how credit risk management practices affect the loan performance of Fintech companies in Kenya. In particular, the study determined how credit terms, credit analysis, and credit mitigation affected loan performance. The research design used for the study was descriptive with the responders being credit officers from the Fintech companies in Kenya. Descriptive and inferential statistics were used to examine the information gathered from 62 Fintech companies through a primary data study that relied on questionnaires for data collection. Data collected was analyzed using descriptive statistics that yield tables, charts, mean and standard deviation that gave meaning to the data collected. The regression equation revealed that the predictors were significant and explained the model at an R squared of 80.5% to yield the study findings that credit risk management play a critical role in determining how well Fintech companies in Kenya operate when it comes to borrowing money and expanding their loan portfolio.Item Debt recovery practices and loan performance of deposit-taking microfinance banks in Kenya(IJSSME, 2024) Ondabu, Ibrahim Tirimba.; Kamanda, Cynicah Nyaboke.; Teimet, Paul.; Matanda, Joshua.This study explored the relationship between debt recovery practices and loan performance for deposit-taking microfinance banks in Kenya. The study is guided by agency theory and risk shifting theory. The objectives of this study include determine the effect of third-party credit and analyze the effect of collection agencies on loan performance. This research adopted a descriptive approach, the research meticulously captured numerical data for rigorous statistical analysis, aligning with the study’s objective. This study used census survey, all 14 microfinance banks licensed and operational by the Central Bank of Kenya were included. This study used self-administered questionnaires. In this study diagnostic tests were performed to validated the robustness of statistical analysis using SPSS. Validity and reliability were ensured through content validity guidelines and expert assessments where reliability has shown an average Cronbach alpha of 0.7 for all the variables. The study conducted a detailed analysis of the relationships between various elements related to loan performance surveyed microfinance banks. In this study the correlation matrix revealed strong positive correlations between third-party credit guarantees, and collection agencies. Regression analysis showed a significant impact of these factors on loan performance, with an R Square of 0.416. The study’s hypotheses regarding the influence of third-party credit guarantees, and collection agencies on loan performance were tested and supported. This study concluded that effective debt recovery practices significantly enhance loan performance in MFBs. Recommendations included reassessing debt policies, focusing on equity policies, and streamlining policy implementation concerning loan defaulters. The study also identified areas for further research to deepen understanding of loan performance dynamics in the microfinance sector. The study highlighted the importance of proactive debt recovery strategies and risk mitigation measures in enhancing the financial sustainability of MFBs in Kenya.