Navigating risk: A deep dive into credit risk management practices and loan performance in Kenya's fintech frontier.

Abstract

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.