Credit Management Practices and Lending Decision by Digital Financial Firms in Kenya


  • Anne Karimi Nthiga Kenyatta University
  • Eddie Simiyu Kenyatta University


Governments step by step have encouraged the improvement of digital lending models as a means of advancing more prominent financial consideration and conveying excellent financial administrations to underserved populaces and organizations. Digital lending has given excessive number of upper hands to FSPs to negligence, and expect that it has lastingly affected the financial division. This investigation targeted setting up the credit the executives rehearse and their relationship to lending choices by digital financial firms in Kenya. The particular targets was  to decide the impact of credit scoring, loan survey framework, purchaser security, financial proficiency on lending choices by digital lending firms in Kenya. It was likewise to incorporate self-guideline as a moderating variable. Speculations utilized were financial intermediation hypothesis, advancement dissemination hypothesis and the portfolio hypothesis. Questionnaires was utilized as they were anything but difficult to control, in contrast to interviews, and regularly have organized reactions that made  it simple to gather data and dissect data. Data will be investigated utilizing graphic statistics, for example, mean, mode and media. Inferential statistics, for example, relapse and Pearson's relationship coefficient was employed in the assessment. The outcomes was revealed in the Charts, Frequency Distribution Tables, and Bar Charts. The factual pack for the sociologies (rendition 17) PC programming was the data examination apparatus. The study found that the organization have specific credit policies for managing loan risks. The study also found that the company ensures that the loan security/insurance is sufficient to cover loan. The study found that the firms had a loan review system to reduce loan defaults. The study also found that loan review system is done monthly in most of the companies. . Finally, the study found at 5% level of significance and 95% level of confidence, credit scoring, loan review practices, consumer protection, and financial literacy were all significant on lending decisions by digital financial firms in Kenya. The study concluded that the nature of their customer influence the lending decisions of the firm. On the effect of policy and decision making of management of digital financial firms in Kenya, it is advisable that sound credit risk management practices are adopted and1 implemented especially though credit risks management information systems.

Keywords: Credit, Management, Practices, Lending, Decision, Digital, Financial, Firms, Kenya

Author Biographies

Anne Karimi Nthiga, Kenyatta University

Postgraduate Student, MBA (Finance), Department of Accounting and finance, School of business

Eddie Simiyu, Kenyatta University

Lecturer, Department of Accounting and finance, school of business


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How to Cite

Nthiga, A. K., & Simiyu, E. (2021). Credit Management Practices and Lending Decision by Digital Financial Firms in Kenya. Journal of Finance and Accounting, 5(1), 49–69. Retrieved from