{"id":6420,"date":"2025-10-21T04:46:59","date_gmt":"2025-10-21T04:46:59","guid":{"rendered":"https:\/\/sgs.kibu.ac.ke\/?p=6420"},"modified":"2025-11-21T08:46:07","modified_gmt":"2025-11-21T08:46:07","slug":"loan-portfolio-management-and-financial-efficacy-of-listed-commercial-banks-in-kenya","status":"publish","type":"post","link":"https:\/\/kibu.ac.ke\/sgs\/loan-portfolio-management-and-financial-efficacy-of-listed-commercial-banks-in-kenya\/","title":{"rendered":"Loan Portfolio Management and Financial Efficacy of Listed Commercial Banks in Kenya."},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"6420\" class=\"elementor elementor-6420\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-442e4798 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"442e4798\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6065b382\" data-id=\"6065b382\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-19ec90d2 elementor-section-content-bottom elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"19ec90d2\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-508881d2\" data-id=\"508881d2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-19535fb4\" data-id=\"19535fb4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7e594b85 elementor-section-height-min-height elementor-section-items-stretch elementor-section-boxed elementor-section-height-default\" data-id=\"7e594b85\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-587d6fd5\" data-id=\"587d6fd5\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3c74d744 elementor-section-height-min-height elementor-section-content-middle elementor-section-boxed elementor-section-height-default\" data-id=\"3c74d744\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-7ed29248\" data-id=\"7ed29248\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-251b5c30 elementor-widget elementor-widget-heading\" data-id=\"251b5c30\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Student\u2019s Name: <br>\nNasong\u2019o Nafula Christine<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-12ec19b4\" data-id=\"12ec19b4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-31d0d17 elementor-widget elementor-widget-heading\" data-id=\"31d0d17\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Supervisors:<br>\n1.\tRashid Fwamba<br>\n2. Tecla Kirwa<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-19f620ab\" data-id=\"19f620ab\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6767880b elementor-widget elementor-widget-heading\" data-id=\"6767880b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Master of Business Administration (Finance option)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6c5a44e4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6c5a44e4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-7dbe635e\" data-id=\"7dbe635e\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7fc40725 elementor-widget elementor-widget-spacer\" data-id=\"7fc40725\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-337aeb97\" data-id=\"337aeb97\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3c2ee79c elementor-section-height-min-height elementor-section-boxed elementor-section-height-default\" data-id=\"3c2ee79c\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-1698425\" data-id=\"1698425\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-10224597 elementor-widget elementor-widget-heading\" data-id=\"10224597\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">ABSTRACT<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-244981f1 elementor-widget elementor-widget-text-editor\" data-id=\"244981f1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>This study determined the relationship between loan portfolio management and financial efficacy of listed commercial banks in Kenya. The financial sector performs a key role in the development of a country and the world at large. Banks operate in an environment of considerable risks and uncertainty due to various challenges experienced over time. Most commercial banks have registered unsatisfactory financial efficacy largely related to ineffective Loan portfolio management. The main objective of this study was to establish the relationship between Loan portfolio management and financial efficacy of listed commercial banks in Kenya while internally focusing on the mortgage appraisal, liquidity hazard, debt recuperation and credit policy, as the key dimensions within commercial banks that determine their respective financial efficacy. Asymmetry information theory and Modern portfolio theory model were employed. The target population comprised of 385 commercial banks management staff out of which using the purposive sampling method and Yamane formula 84 respondents were selected. Data was gathered at commercial banks headquarters in Nairobi. A mixed method research design was adopted in the study. This research consisted of both quantitative and qualitative paradigms. This study utilized probability and non-probability sampling procedures to sample target groups. Primary data was obtained directly from respondents using a closed and open-ended questionnaire while Secondary data was obtained from publications and reports. Reliability was measured by Cronbach\u2019s alpha test at a minimum threshold of 0.7. This data was analyzed using multiple regression models. IBM SPSS Statistics version 30 was used in analyzing correlations amongst the variables. A multiple regression model was used to analyze the data. According to the findings, mortgage appraisal has a statistically significant positive effect ( ?= 0.698, p = 0.034) on the financial efficacy of commercial banks in Kenya; Liquidity hazard has a significant positive effect ( ? = 0.648, p = 0.000) on the financial efficacy of commercial banks in Kenya, debt recuperation has a significant positive effect ( ? = 0.657, p = 0.000) on the financial efficacy of commercial banks in Kenya and credit policy has a significant positive effect ( ? = 0.612, p = 0.000) on the financial efficacy of commercial banks in Kenya. Based on the findings of the study, it was concluded that loan portfolio management under consideration mortgage appraisal, liquidity hazard, debt recuperation and credit policy significantly influenced financial efficacy of listed commercial banks in Kenya. Therefore, the study recommends that for commercial banks to remain profitable they should have loan portfolio management which will help them in making prudent decisions about loan investment mix and policy, matching investments to objectives. Level of loan asset allocation for banking institutions should be balanced against risk and financial performance. Also, it recommends that loan portfolio management techniques employed by banks should focus more on strategic issues for a portfolio of projects and the ability to achieve strategic objectives. In addition, it further recommends that commercial banks should not ignore other non-loans factors for they have fair constant contribution to the overall profitability of the banks. Since credit policy was found to strongly influence profitability of banks, Commercial banks in Kenya should concentrate on advancing more of these policies to enhance their general performance.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-100ff63a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"100ff63a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4d4831fd\" data-id=\"4d4831fd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Student\u2019s Name: Nasong\u2019o Nafula Christine Supervisors: 1. Rashid Fwamba 2. Tecla Kirwa Master of Business Administration (Finance option) ABSTRACT This study determined the relationship between loan portfolio management and financial efficacy of listed commercial banks in Kenya. The financial sector performs a key role in the development of a country and the world at large. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-6420","post","type-post","status-publish","format-standard","hentry","category-theses"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Loan Portfolio Management and Financial Efficacy of Listed Commercial Banks in Kenya. - School of Graduate Studies<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kibu.ac.ke\/sgs\/loan-portfolio-management-and-financial-efficacy-of-listed-commercial-banks-in-kenya\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loan Portfolio Management and Financial Efficacy of Listed Commercial Banks in Kenya. - School of Graduate Studies\" \/>\n<meta property=\"og:description\" content=\"Student\u2019s Name: Nasong\u2019o Nafula Christine Supervisors: 1. Rashid Fwamba 2. Tecla Kirwa Master of Business Administration (Finance option) ABSTRACT This study determined the relationship between loan portfolio management and financial efficacy of listed commercial banks in Kenya. The financial sector performs a key role in the development of a country and the world at large. 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Rashid Fwamba 2. Tecla Kirwa Master of Business Administration (Finance option) ABSTRACT This study determined the relationship between loan portfolio management and financial efficacy of listed commercial banks in Kenya. The financial sector performs a key role in the development of a country and the world at large. 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