The Effects Of Credit Management Practices On The Perfomance Of Cooperatives

The Effects Of Credit Management Practices On The Perfomance Of Cooperatives – A Case Of Githunguri Dairy Farmers Cooperative

By Muturi Ng’ang’a

The main purpose of the study is to examine the effect of credit management practices on financial performance of cooperatives with particular references to Githunguri dairy farmers` cooperative society. The study is based on specific objectives to find out the impact of Credit policy, to determine the effects of credit limit, the effectiveness of debt recovery in bad debts avoidance and effectiveness of various debt collection methods and their effects in financial performance of cooperatives. The study employs a descriptive research design in order to come up with the relevant data for analysis. The researcher will use simple stratified random sampling procedure to select a sample. The research study aims at establishing whether credit policies exist in Githunguri Dairy Farmers Cooperative, their implementation by management, credit limit set and their reviews, and finally procedures followed in collection.