ABSTRACT

The purpose of this study was to investigate factors affecting loan repayment among saccos in
Nakuru sub county Kenya with specific to Nakuru west subcounty. The study achieved its
purpose through three objectives namely to determine the effect of loan factors on loan
repayment among saccos, to find out the effects of interest rates factors affecting loan repayment
among saccos and finally to establish to what extent does the individual factors the effect of loan
factors on loan repayment among saccos in Nakuru west subcounty. The study included which
includes Credit Administrators and Relationship Managers within the of Nakuru west County. It
also included both mass market customers and the relationship managed customers. The target
population included 58 respondents. The research design used was descriptive statistics. The
study reviewed relevant literature with the aim of establishing a gap which the research fulfilled.
Methods of collecting data were questionnaires. This study concludes that there is a significant
relationship between several factors and the loan repayment among saccos in Nakuru. The study
also concludes that there is a significant relationship between individual borrowers’ factors and
the loan repayment among saccos. The study further concludes that there is a significant
relationship between loan factors and the loan repayment. The study recommends that saccos
need to have mandatory supervision borrowers on loan utilization and repayment. The study also
recommends that saccos should apply efficient and effective credit risk management that will
ensure that loans are matched with ability to repay, no or minimal insider lending, loan defaults
are projected accordingly and relevant measures taken to minimize the same. The study further
recommends that commercial banks should pool together and establish a credit information
bureau to which reference can be made before a loan is disbursement. The study recommends
that commercial banks should also apply rigorous policies on loan advances so as loans are
awarded to those with ability to repay and mitigate moral hazards such as insider lending and
information asymmetry.
Budget
Details Amount
Typing and printing 2000
Binding 500
Transport 3200
Other miscellaneous 4000
Total 9700