1P.O BOX 2982-20100, Nakuru Kenya Jomo Kenyatta University of Agriculture and Technology
2Jomo Kenyatta University of Agriculture and Technology, P.O BOX 1063-20100, Nakuru, Kenya
3Jomo Kenyatta University of Agriculture and Technology, P.O BOX 1063-20100, Nakuru, Kenya
*Corresponding Author P.O BOX 2982-20100, Nakuru, Kenya, Jomo Kenyatta University of Agriculture and Technology, Email: kiplagatjoash@yahoo.com.
Online published on 22 June, 2018.
Savings and Credit Co-operative Societies (SACCOs) in Kenya have been investing over the years with the objective of maximizing their wealth. Studies have shown that lack of sufficient growth of S!CCOs’ wealth has made it difficult for them to absorb their operational losses, which has threatened their sustainability. This study examined the effect of credit scoring and credit administration on financial performance of deposit taking SACCOs in Nakuru East Sub-county. The study was based on a descriptive survey design and targeted credit officers and credit managers in deposit taking SACCOs in Nakuru East Sub-County. Data was collected using questionnaire from a sample of 90. The sampling units was picked using census. The results indicated that there existed a strong association between credit scoring and financial performance of the deposit taking SACCOs with a chi-square value of 86.76 and p-value of.00. Credit administration in deposit taking SACCOs also had a strong association with financial performance, with chi-square value of 89.68 and p-value of.00. The study recommends that S!CCO's should improve on their credit scoring and credit administration as credit management practices so as to improve on their financial performance.
Credit Scoring, Financial Performance, Credit Administration, Nakuru East Sub County, Credit Risk Management Practices
