Effects of Credit Management Practices on Loan Performance of Commercial Banks Listed at the Nairobi Stock Exchange, Kenya

Abstract

The purpose of this research was to investigate the effect of credit management practices on loan performance of commercial banks listed at the Nairobi Stock Exchange, Kenya. “The study set out to accomplish four main goals were: first, to assess the influence of credit terms on loan performance of commercial banks listed at the Nairobi Stock Exchange, Kenya; second, to determine the influence of client appraisal on loan performance of commercial banks listed at the Nairobi Stock Exchange, Kenya, third to evaluate the influence of credit policies on loan performance of commercial banks listed at the Nairobi Stock Exchange, Kenya; and finally fourth, to determine the effect of credit risk control on loan performance of commercial banks listed at the Nairobi Stock Exchange, Kenya. This study utilized a descriptive survey approach, as outlined by Creswell and Creswell (2017), in order to construct a full profile of the variables being examined. The target population consisted of the commercial banks listed on the Nairobi Stock Exchange, as these institutions had the requisite data and information necessary to provide valuable insights into addressing the research questions. The study employed a self-administered questionnaire as the principal means of data collection. To conduct an appropriate analysis, the study employed a combination of descriptive and inferential statistics. The major reason for investigating the influence of credit management practices on loan performance of commercial banks listed at the NSE was in order to advise the those involved in credit management in commercial banks listed at the Nairobi Stock Exchange to take a proactive approach to adopt and implement sound credit management practices based on the fact that the study established” that credit management practices has a positive contribution on loan performance of commercial banks listed at the NSE