| dc.description.abstract | Sound lending procedures in financial institutions involve identifying high-risk loan applicants, modifying
lending conditions such as security requirements and monitoring repayments. Credit risk management is an
emerging activity that lies within Sacco’s. Many researches have attempted to answer the benefits of the credit
risk management. However, it has remained unclear for the Sacco’s management on the effects of credit risk
management practices on lending portfolio. The purpose of this study was to examine the effects of credit risk
management practices on lending portfolio among Sacco’s in Nakuru County, Kenya. Data on risk identification,
risk analysis, risk monitoring, risk evaluation and risk mitigation obtained from 59 Sacco’s sampled from among
Saccos in Nakuru County were analyzed using regression models to identify its effect on lending portfolio.
Results indicate a significant effect of all the risk management practices on lending portfolio except risk
evaluation which did not register a significant effect on the lending portfolio of the Sacco’s. The findings further
show that majority of the Sacco’s have largely adopted risk management practices as a means of managing their
portfolio | en_US |
