Abstract:
This study sought to explore the effect of Loan Repayment on financial performance of deposit taking SACCOs in
Mount Kenya Region. The target population was all the thirty licensed deposit taking SACCOs in Mount Kenya Region, the
sampling technique employed was simple random sampling and the sample size was 92 respondents. This study adopted a
descriptive survey in soliciting information on effects of Loan Repayment on financial performance of deposit taking SACCOs
in Mount Kenya region. Primary quantitative data was collected by use of self-administered structured questionnaires. The
researcher also used secondary data derived from the audited financial statement of the SACCOs and the regulator (SASRA).
The data collected was analyzed, with respect to the study objectives, using both descriptive and inferential statistics. The
researcher concluded that there is need for the regulator to introduce credit policy for the sector, this will help in controlling
credit risks among the SACCOs in the sector and reduce credit exposure on guarantors. Currently huge percentage of credit
risk is on the guarantors but since the sector is on upward trend on growth, there is need to strengthen the sector by
adoption of better and efficient credit management system and will ensure the sector is competitive across the Kenyan
financial sector.
