CREDIT MANAGEMENT AND FINANCIAL PERFORMANCE OF MICRO-FINANCIAL INSTITUTIONS IN MOMBASA COUNTY, KENYA

The general objective of the study was be to investigate the effect of credit management on financial performance of Micro Finance Institutions (MFIs) in Kenya. The study specific objectives were to establish the effect of client credit appraisal, credit risk monitoring, credit granting and credit terms on financial performance of MFIs in Mombasa County . The theories guiding the study were asymmetry information theory, 5 Cs client appraisal model, motive theory and balanced score card theory . The study found out that credit appraisal, credit risk monitoring, credit granting and credit terms affect financial performance of MFIs in Mombasa County, Kenya. The study concluded that client credit appraisal, credit risk monitoring, credit granting and credit terms influences the performance of MFIs in Mombasa County. The study recommended that management of MFIs should improve on client credit appraisal, credit risk monitoring, credit granting and credit terms so as to improve on the performance of MFIs in Mombasa County. Key Words: Credit Appraisal, Credit Risk Monitoring, Credit Granting, Credit Terms CITATION: Mboe, A., & Kavale, S. (2023). Credit management and financial performance of micro-financial institutions in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 10 (4), 261 – 272. http://dx.doi.org/10.61426/sjbcm.v10i4.2748.