Influence of Credit Risk Supervision Strategies on Financial Performance of Deposit-Taking SACCOs in Mombasa County, Kenya

The objective of the study was to investigate the influence of credit risk supervision strategies on the financial performance of Deposit-Taking Saccos in Mombasa County, Kenya. The study was supported by the credit risk theory. The study adopted the descriptive research design. The target population included 109 participants from all the six-deposit taking SACCOs in Mombasa County. The stratified random sampling technique resulted into having 86 units of analysis. The study used primary data which was collected using questionnaires. The gathered data underwent decoding and analysis using the Statistical Package for the Social Sciences version 26. The study employed simple linear regression model in data analysis. The study found a strong positive correlation of 0.407 between credit risk supervision strategies and financial performance. Additionally, the results of the regression analysis indicated that credit risk supervision strategies explained more than 40.8% of the variability in the financial performance of the SACCOs in Mombasa County. The hypothesis testing led to the rejection of H01. The rejection of H01 confirmed that credit risk supervision strategies have a positive and significant influence on the financial performance of SACCOs in Mombasa County, Kenya. The study concludes that credit risk supervision strategies a significant role in enhancing the financial performance of the SACCO sector in Mombasa County, Kenya. The study recommends that deposit taking SACCOs in Mombasa County should prioritize the implementation of robust credit risk supervision strategies to enhance their financial performance. Additionally, SACCOs should invest in comprehensive employee training programs to ensure that their workforce is well-equipped to adhere to optimal lending practices and risk management protocols. The study also recommends that policy formulating and regulatory bodies such as SASRA should devise mechanisms and enforce policies which are geared towards enabling SACCOs to develop strategies which will enable them monitor their credit Keywords: Credit risk supervision strategies, financial performance, deposit-taking saccos Mombasa County, Kenya