Title: Effects of firms' liquidity on non-performing loans of deposit taking SACCO's in Kenya

Authors: Nehemiah Mbatia; Fred Sporta

Addresses: Department of Accounting, Finance and Economics, KCA University, Kenya ' Department of Accounting, Finance and Economics, KCA University, Kenya

Abstract: Non-performing loans is a problem facing many deposit taking SACCOS in Kenya and this if problem is not mitigated will root collapsing of the financial institutions which are of great benefit in financial deepening of a country. Liquidity, as characteristic related to deposit taking SACCOS was analysed to determine at what extent it influences level of NPLs. The period of the study was six years, from 2012 to 2017. The data used was derived from financial statements which are submitted by DT-SACCOs to SASRA offices whereby a total of 119 deposits taking SACCOs were used as the target population of the study. The study recommended level of liquidity level should be adhered to and this will help to control level of non-performing loans.

Keywords: non-performing loans; deposit taking SACCOs; Kenya.

DOI: 10.1504/AJAAF.2022.123974

African Journal of Accounting, Auditing and Finance, 2022 Vol.8 No.1, pp.49 - 55

Received: 05 Jan 2021
Accepted: 06 Jul 2021

Published online: 05 Jul 2022 *

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