Bank loans in Mombasa now based on past transactions and credit history.
The study looked at how credit documentation affects loan performance in Kenyan commercial banks, focusing on Kenya Commercial Bank. They surveyed 76 management staff and found that the bank checks customers' past transactions before giving out loans, considers their credit history, and assesses their ability to repay. The study concluded that examining past transactions helps reduce non-performing loans, and recommended issuing loans based on repayment amount and verifying the source of repayment.