Factors Influencing Credit Management as A Strategy on the Performance of SACCOS in Nairobi City County: A Case of Ukulima SACCO

This study examined the factors that influence credit management as a strategy in the performance of SACCOs in Nairobi City County. The study was limited to Ukulima SACCO. The study was guided by solving of the specific objectives which are Common bond, Collateral requirement, Credit risk, and Loan repayment ability. The study adopted a descriptive survey design utilizing both primary and secondary data. Structured and unstructured questionnaires were used to collect primary data which were administered through drop and pick later method while secondary data was collected through document review. Data analysis was carried out using qualitative and quantitative techniques with the aid of SPSS while the main method of data presentation was frequency distribution, tables, pie charts and bar graphs. The study found out that restriction of loan guarantee creates friction among members. The analysis of the data shows that most members suggest that SACCOs to open the loan guarantee and include other collaterals to secure the loans. The study recommends education to SACCO members to immediately address the credit management issues by encouraging members to save regularly, borrow wisely for productive purposes and repay their loans promptly. The study also recommends that credit policy should be reviewed by SACCOs from time to time to reflect the economic trends due to the changing world of business, hence efforts on credit management strategy will be enhanced.