The Effectiveness of Credit Risk Management Practices Utilized By Kenya Commercial Bank in Small and Medium Enterprise Credit in Kenya

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The Effectiveness of Credit Risk Management Practices Utilized By Kenya Commercial Bank in Small and Medium Enterprise Credit in Kenya

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dc.contributor.author Cheruiyot, Willy Kimutai
dc.date.accessioned 2021-04-06T15:37:38Z
dc.date.available 2021-04-06T15:37:38Z
dc.date.issued 2012-05
dc.identifier.citation Cheruiyot, W. K, (2012), The Effectiveness of Credit Risk Management Practices Utilized By Kenya Commercial Bank in Small and Medium Enterprise Credit in Kenya: Daystar University, School of Business and Economics, Nairobi en_US
dc.identifier.uri http://repository.daystar.ac.ke/xmlui/handle/123456789/3527
dc.description Master of Business Administration in Finance en_US
dc.description.abstract The purpose of this research was to assess the effectiveness of credit risk management practices utilized by KCB in SME credit in Kenya. The problem addressed by this research was the high rates of non- performing SME loans. The objectives of the study were; to find out the role of credit risk management practices in the provision of SME credit by KCB, to establish the credit risk management practices used by KCB in SME credit, to determine the effectiveness of credit risk management practices utilized by KCB in SME credit and to identify the challenges faced by KCB in SME credit risk management. The researcher used descriptive research design. The population for this study was 3,914 employees at KCB Kenya while the target population was 115 employees of SME lending and credit risk departments based at head office accessible to be served with questionnaires. Census was carried out on the target population whereby 78 out of the 115 members responded; translating to 68% response rate. Self administered questionnaires were used to collect primary data while secondary data were collected through extensive reading. Data analysis was done using SPSS software and findings presented using descriptive statistical tools namely: tabulation, graphical presentation, percentages and ratios. In line with the objectives, the researcher found out that credit risk management practices played a key role in identifying the perceived SME credit risks and that KCB relied on credit administration and intensive loan monitoring as the main credit risk management practices at 100% and 80% respectively leading to 53% of the respondents concluding that the practices utilized were not effective since PAR was still high. KCB also faced several challenges while managing SME credit risk, with data integrity and collection strategies the highest at 96% and 86% respectively en_US
dc.description.sponsorship Daystar University, School of Business and Economics en_US
dc.language.iso en en_US
dc.publisher Daystar University, School of Business and Economics en_US
dc.subject Credit Risk Management Practices en_US
dc.subject Kenya Commercial Bank en_US
dc.subject Small and Medium Enterprise Credit in Kenya en_US
dc.title The Effectiveness of Credit Risk Management Practices Utilized By Kenya Commercial Bank in Small and Medium Enterprise Credit in Kenya en_US
dc.type Thesis en_US


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