NON-PERFORMING LOANS AND FINANCIAL STABILITY OF DEPOSIT TAKING SACCOS REGULATED BY SASRA

Authors

  • Rahab Ntoiti Department of Accounts and Finance, Kenyatta University
  • Dr.Ambrose Jagongo Department of Accounts and Finance, Kenyatta University

DOI:

https://doi.org/10.47604/ijfa.1408
Abstract views: 763
PDF downloads: 882

Keywords:

Non-Performing Loan, Financial Stability, Deposit Taking Saccos

Abstract

Purpose: The study sought to investigate the effect of non-performing loan on financial stability of deposit taking SACCOs in Kenya.

Materials and Methods: The study adopted a desktop methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library

Results: Nonperforming loans and their effect on the financial stability of SACCOs using have not been adequately featured in any of the studies reviewed. This leaves a gap that needs to be filled. SACCOs play a very vital role in the financial intermediation in the Kenyan economy and their uniqueness in operations. This study will therefore focus on filling this gap.

Unique contribution to theory, practice and policy: the study findings of this study will assist the regulators of Sacco’s SASRA to formulate stringent policies to tame the rising cases of non-performing loans. The findings of this study will be useful to SACCOs within Nairobi County in evaluating how effective their approach to managing NPLs has been. This will enable them to identify the gaps in their management of NPLs and adjust accordingly.

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Published

2021-10-30

How to Cite

Ntoiti, R., & Jagongo, A. (2021). NON-PERFORMING LOANS AND FINANCIAL STABILITY OF DEPOSIT TAKING SACCOS REGULATED BY SASRA. International Journal of Finance and Accounting, 6(2), 29 – 39. https://doi.org/10.47604/ijfa.1408

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