ABSTRACT
This study sought to determine the effect of credit policy on financial performance of deposit taking Savings and Credit Cooperative Organizations in Kenya. Key determinants of SACCO financial performance reviewed in this study were credit collection, loan policy, credit monitoring and insider trading. The study used descriptive research design and a target population of 175 SACCOs registered under SASRA. The study adopted all SACCOs in the study through a census method. Data collected was analyzed using descriptive and inferential statistics through multi-linear regression model. The study established that; Loan policy had a positive significant relationship with financial performance of deposit taking SACCOs in Kenya although its correlation with financial performance was found to be weak. Secondly, credit collection had a positive and significant influence on financial performance of deposit taking Savings and Credit Cooperative organizations in Kenya, however, it had a weak positive correlation with financial performance. Furthermore, credit monitoring had a positive and significant influence on financial performance of deposit taking Savings and Credit Cooperative Organizations in Kenya, it’s correlation with financial performance was fond to be weak but positive. Finally, insider trading had a positive and significant influence on financial performance of deposit taking Savings and Credit Cooperative organizations in Kenya. However, the study established a weak positive correlation between insider trading and financial performance.