Credit Risk Mitigation Strategies Adopted by Commercial Banks in Kenya

Abstract

The study’s overall objective was to investigate credit risk mitigation strategies adopted by 44 the commercial banks currently operating in Kenya. The study was descriptive in nature. The study opted for both primary and secondary forms of data. The secondary data was collected from the documentations obtainable from the banks and the primary data from various banks. The collected data was examined to make inferences through a series of operations. Data was analyzed using descriptive statistics involving percentages and charts. The study found out that the banks had policies and strategies that governed the loan lending. Though this existed most of the banks didn’t seem to efficiently implement the same. The banks assumed some of the economic factors which could affect their loan performance. The banks also concentrated highly on collateral as the main security for loans which at times made the banks assume other strategies of preventing risk.