Credit Risk, Liquidity Risk And Financial Performance Of Deposit Taking Saving And Credit Co-operative Societies In Kenya

ABSTRACT SACCOs are essential financial intermediaries especially in the rural and far to reach areas by commercial banks. Poor financial performance, insolvency and general liquidity challenges have become common to SACCOs. Loans provide the most favourable investment option for financial entities due to the interest receivable. In carrying out this lending activities, they are exposed to credit risk and liquidity risk. The main source of credit risk is outstanding loans that might eventually not be paid back, liquidity risk arises from the inability of the SACCOs to repay their short term l…