Impact Of Credit Policy Management On Performance Of Microfinance Institutions A Case Study Of Kitgum Sacco

Abstract

The purpose of the study was to establish the effectiveness of credit policy management and

performance in kitgum saving cooperative and credit society (Kitgum SACCO) and to establish

the extent to which management contributes to the successful operation of the existing credit

policy in kitgum district.

The study sample size was 25 respondents from kitgum sacco. The study was carried out using

questionnaires as a method of data collection. The secondary data used were internal documents

such as audit reports 2008 -2009, files, kitgum Saccos' strategies plan 2005 - 2012.

Objectives of the study

• To evaluate the effectiveness of the credit policies on performance of microfinance

institutions of kitgum saccos.

• To evaluate the relationship between management and performance of kitgum saccos

• To assess the causes of unethical behaviors of the credit officials ofkitgum sacco.

From the findings, the main causes of deteriorating performance are; inefficiency of some credit

policy variables, inadequate credit policies and improper management.

However the major weakness in credit management ofkitgum sacco is reluctance to make follow

up in after the expiration of the period. Uncreditworthiness of some credit officials by writing off

debts as bad and yet actually they have received payments. Inefficiency of control systems put in

place and failure to implement the appropriate credit policy, resulting into low revenue collections.

Read Download