Abstract: There is a general credit that inability to pay agriculturists' normal extra has been because of general poor management and additionally the high expense in producing and long and wasteful production network. This has raised many questions on the management of risks in finance within Factories. The study aimed at investigating how credit risk management affects the financial performance. The study utilized descriptive research design comprising a population of 80 managers together with the accountants. Simple random sampling method was used in selecting the sample size. Questionnaires were used in collecting data. Both descriptive and inferential statistics were used. The credit risk management has a positive and significant relationship on performance of SMEs. The study therefore recommends that the management of these factories should include experts in financial issues to advice on how to avoid occurrence of financial risks so as to enhance the financial performance.
Keywords: Credit Risk Management, Financial Performance.
Title: EFFECTS OF CREDIT RISK MANAGEMENT ON THE FINANCIAL PERFORMANCE OF SMALL SCALE TEA FACTORIES IN KERICHO AND BOMET COUNTIES IN KENYA
Author: Rosemary Chelangat, Dr. CHARLES TIBBS
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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