INFLUENCE OF CREDIT ASSESSMENT PROCESS ON REPAYMENT OF KENYA COMMERCIAL BANK LOANS IN SOUTH SUDAN

Abstract

The purpose of this research project was to assess the influence of credit assessment process on repayments of loans at Kenya Commercial Bank South Sudan Limited. KCB South Sudan Ltd non-performing loans increased beyond the allowed levels which as a result affected the overall group business performance. The study adopted a descriptive research design focusing on KCB South Sudan Limited. The study found out that in order to assess the credit risk of a loan advanced the lending institution needs to check the borrowers' economic and legal situation, assessing the environmental situation in which the borrower is operating in and in particular the environment in South Sudan. In addition, lending institution should have sound credit approval authorities, a prudent credit practice personnel ought to have customer relationship responsibility and there is need for credit monitoring so that the bank appreciates the borrower's current financial status and monitor the prevailing financial situation affecting the country like inflation. The study concluded that there existed a significant negative relationship between use of credit risk control and level of non–repayment of bank loans. The study recommends that KCB South Sudan Ltd should use credit risk identification practices in risk management due to its impact on reduction of level of bank loans repayment and enhance usage of credit risk analysis and appraisal in credit risk management