| dc.description.abstract | In this study, the performance of loan funds within Laikipia County, Kenya is
investigated with particular attention given to the Laikipia County Enterprise Fund (LCEF)
and the Laikipia County Revolving Cooperative Fund (LCRCF). The determinants of these
fund's efficiency from a beneficiary perspective - in particular Small and Medium-sized
Enterprises (SMEs) and cooperatives - are analyzed. This study sought to investigate these
impediments focusing on both the supply and demand side. Three primary areas were
evaluated: beneficiary traits, loan fund administration methods, and loan operation
procedures processes. On the supply, Loan repayment rate, loan portfolio quality, loan fund
sustainability and loan fund growth are used as indicators to operationalize the performance
of the loan funds. The research seeks to understand the effect of beneficiary characteristics on
loan fund performance. This quantitative research project involved the development a
questionnaire to gather data from fund management and administration, Laikipia County
SMEs. Descriptive statistics, correlation analysis, and regression model was used to establish
the most influential factors on loan fund performance. The questionnaire's reliability and
ethical considerations related to data collection and analysis was also assessed provided
evidence-based insights that can inform decisions, enhance management and drive targeted
policy recommendations for Laikipia County's Enterprise Fund and Cooperative Revolving
Fund. These funds are essential in providing financial assistance for SMEs and cooperatives,
thereby stimulating economic growth and empowerment in the region. The study findings
showed that beneficiary characteristics have significant influence on performance of loan
funds in Laikipia County. Moreover, loan management practices positively and significantly
influenced loan funds performance. Likewise, loan operation procedures significantly
affected performance of loan funds. A conclusion was made that loan service provider at the
county need to understand beneficiary demographic characteristics based on education, borrower’s
experience and kind of business operated. In addition, loan management practices such as
approvals, disbursements and default policies are integral in achieving optimal loan
performance. The study concluded that loan operation procedures significantly and positively
affected performance of loan funds. The study recommends that to review their vetting and
screening process so that credit worth people are allocated financing through credit have
credit worthiness attributes. The use of technology will make the loan management practices
efficient and effective since many data can be pooled and worked within a shorter period of
time. It is recommended that loan operation procedures are tailored to meet customer
expectations especially on simplification of the processes. The study suggests use of
secondary data in measuring performance of loans | en_US |
