High non-performing loans in Kenyan banks linked to credit management practices.
Commercial banks in Kenya have been facing higher loan defaults than recommended, possibly due to poor credit management practices. A study looked at how debt collection policy, client appraisal, and lending policy affect loan performance. They found that a good debt collection policy and lending policy can improve loan performance, but client appraisal doesn't have a significant impact. This suggests that banks need to focus on improving their credit management practices to reduce loan defaults.