Institutional and borrower characteristics drive loan repayment defaults in Kenya.
The study looked at why people don't repay loans in microfinance banks in Kenya. They found that the bank's rules, the borrower's characteristics, and the loan terms all play a role in loan defaults. The researchers used data from credit officers and borrowers to figure this out. They suggest that banks should train their staff better to make sure they only give loans to people who can pay them back. This will help reduce the number of loans that are not repaid.