THE INFLUENCE OF STAFF COMPETENCE ON CREDIT RECOVERY IN DEPOSIT-TAKING MICROFINANCE INSTITUTIONS IN NAKURU COUNTY, KENYA

Autori

  • Jane Nyambura Nyutu MBA Candidate, Laikipia University, Kenya
  • James N. Kung’u Lecturer Department of Commerce, Laikipia University, Kenya
  • Thomas W. Gakobo Lecturer Department of Commerce, Laikipia University, Kenya

DOI:

https://doi.org/10.46827/ejefr.v8i5.1798

Ključne reči:

staff competencies, loan defaults, deposit-taking microfinance, loan recovery

Apstrakt

The study looked into how staff competencies affect loan recovery at deposit-taking microfinance firms in Nakuru County, Kenya. Microfinance institutions have evolved into self-sustaining financial organizations that provide credit for a fee and profit. Despite efforts to prevent loan defaults, MFIs are experiencing an increase in loan defaults. The study employed two theories: knowledge asymmetry and delegated borrower monitoring. The findings revealed that staff competencies had a substantial impact on credit recovery among MFIs. MFI management should guarantee that the crediting team has enough capacity to detect and prevent bad debt and that adverse debt reports are addressed promptly. Management and staff should inform clients about the repercussions of loan default, as bad debts lead to institutional failure.

 

JEL: G21, O16, D82, G32, M12

 

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Biografije autora

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    Jane Nyambura Nyutu is an assistant manager, service delivery in Faulu Microfinance Bank. She holds a degree in business information technology from Mount Kenya University. Her research interests are in Microfinance institutions lending management.

  • {$ime} {$affilijacija}

    Dr. James N. Kung’u is a senior lecturer in the School of Business and Economics Laikipia University. He holds a Doctor of Philosophy Degree in Finance from Jomo Kenyatta University of Agriculture and Technology. His research interests are in County and Regional Government and Micro Enterprise Businesses.

  • {$ime} {$affilijacija}

    Dr. Thomas W. Gakobo is a senior lecturer in the School of Business and Economics Laikipia University. He holds a Doctor of Philosophy Degree in Business Administration from Laikipia University. His research interests are in customers satisfaction and strategy.

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Preuzimanja

Objavljeno

2024-08-16

Broj časopisa

God. 8 Br. 5 (2024)

Rubrika

Articles