Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285


Effect of Credit Management on Financial Performance of Sweet Potato Marketing Cooperatives in Western Kenya

Gitau Beth Njeri

The potential of sweet potatoes in helping meet food security needs and reduce poverty levels through income generation cannot be overemphasized. The study sought to determine how credit management influences financial performance of sweet potato marketing cooperatives in Western Kenya. The study design was descriptive research design. Secondary data was used for analysis. The target population was four sweet potato marketing cooperatives in western Kenya registered as at December, 2015 by the Commissioner of cooperatives in Kenya. Census sampling was used comprising of Homabay, Bungoma, Busia and Siaya counties. Secondary data over the ten year-period covering 2006-2015 was obtained. Data was collected using secondary data collection sheet and analyzed using multiple panel regression models. Limitations faced during data collection included high illiteracy levels amongst cooperative members. This was controlled by taking the officials through the facets of credit management to have them understand the concepts under enquiry. The study findings showed that credit management had significant influence on return on investment, a measure of financial performance of sweet potato marketing cooperatives in Western Kenya and tests for significance also showed that the influence was statistically significant. The study therefore recommends that all sweet potato marketing cooperative officials and members be trained on credit management aspects.