| dc.description.abstract | : The rapid growth of mobile-based lending in Kenya has brought diverse financial risks potentially
affecting the lenders' financial performance. The current study examined the effect of credit risk management on
the financial performance of mobile-based lenders. The research was anchored by credit risk theory. A
quantitative research design was adopted. The study's target population comprised 7 Mobile-based lenders in
Nakuru County while the unit of analysis was 64 credit officers and debt collectors. Due to the limited number of
respondents, a census technique was preferred, where all the credit officers and debt collectors were involved.
Data collection was done through structured questionnaires. Data was analyzed using IBM SPSS software,
employing descriptive and inferential methods. The study's descriptive research findings established credit risk
management affected the mobile-based lenders' financial performance. As per the results of the correlation
analysis, the correlation coefficient was (r=0.414**; p=0.002). This implied that the relationship between credit
risk management and financial performance was significant. As such, credit risk management affected the
financial performance of mobile-based lenders. Additionally, the results of regression analysis indicated a
coefficient of determination (R2=0.171), signifying that 17.1% of the variation in mobile-based lenders' financial
performance was explained by credit risk management. These findings highlight the critical importance of
implementing effective credit risk management practices among mobile-based lenders to enhance their financial
performance. Moreover, the study emphasizes the integration of risk management into the strategic decisionmaking processes of lending institutions. The study will help policymakers and regulators focus more on sound
risk management in the mobile-based lending sector, fostering desirable financial performance and stability. | en_US |
