Bank Credit Scheme Management and Success of Business Projects Financed by Banks in Rwanda; A Case Study of Bank of Kigali


  • Divin MUVUNYI Mount Kenya University, Rwanda
  • Dr. Jean de Dieu Khan KAKIZIMANA Mount Kenya University, Rwanda



The study sought to investigate the influence of bank credit scheme management in Kigali on the success of business projects filed by borrowers. It focused on examining the loan processes that lead to project success and identifying obstacles that impede it. The study was driven by three specific objectives: to determine the impact of credit appraisal on the success of business projects, to measure the influence of credit risk control, and to assess the effect of debt collection policy on project success. To accomplish these goals, the study adopted a descriptive case study design, employing both qualitative and quantitative methods to gain comprehensive insights. The study encompassed a population of 14,856, with a sample size of 95 respondents selected through a comprehensive sampling technique. Data collection was executed using questionnaires and unstructured interviews, with the Scientific Package for Social Science (SPSS) earmarked for data analysis using mean, standard deviation, and correlation coefficients. The study results indicated a significant consideration of respondent suggestions and inputs in financial statement lending and operating cash flow assumptions. The updated variables reflected a short to medium-term operating cash burn in the bank as per the financed projects. A strong correlation was found between credit appraisal and the success of business projects, evidenced by a Pearson correlation of 0.917** and a p-value of 0.000, significantly below the standard significance level of 0.01. This suggests that credit appraisal is a critical factor for the success of business projects financed by banks in Rwanda. The study recommended that the management should fortify financial statement lending and update operating cash flow assumptions regularly to mirror changing variables. Additionally, management should comprehend the probability of loss due to a borrower's failure by involving in participative budgeting and engaging in the credit preparation process to mitigate potential losses. The study also recommends prioritizing and improving credit appraisal processes to ensure thorough evaluation of loan applicants, strengthening debt collection policies to reduce default rates, and fostering a culture of continuous improvement and collaboration among banks in Rwanda. Additionally, it suggests a review of credit risk control practices to align them with the specific needs of businesses in the region

Keywords: Bank Credit, Scheme Management, Success of Business Projects, Bank of Kigali, Rwanda

Author Biographies

Divin MUVUNYI, Mount Kenya University, Rwanda

Postgraduate student, Kenyatta University, Mount Kenya University, Rwanda

Dr. Jean de Dieu Khan KAKIZIMANA, Mount Kenya University, Rwanda

Lecturer, Department, Business Administration, Mount Kenya University, Rwanda


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How to Cite

MUVUNYI, D., & KAKIZIMANA, J. de D. K. (2023). Bank Credit Scheme Management and Success of Business Projects Financed by Banks in Rwanda; A Case Study of Bank of Kigali. Journal of Strategic Management, 7(7), 121–143.