• Hussein Diriye Jimale Kenyatta University
  • Dr. Ndede, F.W.S F.W.S Ndede Kenyatta University



credit risk management, access, Islamic banking, capital adequacy, market structure, asset quality, technology adoption


Purpose: This study sought was to assess the effect of credit risk management on access to banking services by Islamic banking customers in Kenya.

Methodology: Descriptive research design was adopted. The target population for this study was 225 employees working in the head offices of the selected Islamic banks. Stratified sampling and simple random sampling were used in generating the sample. This study made use of primary data collected using structured questionnaires. The collected data was entered into the Statistical Program for Social Sciences for windows version 20 because of its ability to analyze data easily and accurately. Multiple regression analysis was used to obtain the model for the study. The study results were presented using percentages, tables and charts

Results: The study findings revealed that asset quality as measured by the non-performing loans ratio had a negative and significant effect on access to banking service by Islamic customers in Kenya. Capital adequacy, market structure and technology adoption were found to have a positive and significant effect on access to banking service by Islamic customers in Kenya. It was concluded that the level of credit risk management in Islamic banking where the level of credit risk was high was crucial for the banks in Kenya if they were to expand the level of access to Islamic banking by Islamic customers.

Unique contribution to theory, practice and policy: The study recommended that banks needed to develop strategies on how to deal with credit risk by striving to keep the amount of nonperforming loans low. The study also recommended that these banks should expand their capital bases in order to strengthen their resilience and internal strength to withstand losses especially when faced by a crisis. They needed to pursue diversification across individual customers by increasing the breadth of products they coul offer to their customers. The regulators of the market needed to ensure prudent supervision so as to maintaining healthy competition in this market. It was also recommended that banks needed to promote the use of technological innovations within banking area such as internet banking, mobile banking as well as ATM banking by their customers.

Author Biographies

Hussein Diriye Jimale, Kenyatta University

Postgraduate student

Dr. Ndede, F.W.S F.W.S Ndede, Kenyatta University



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How to Cite

Jimale, H. D., & Ndede, D. N. F. F. (2017). CREDIT RISK MANAGEMENT AND ACCESS TO BANKING SERVICES BY ISLAMIC BANKING CUSTOMERS IN KENYA. International Journal of Finance, 2(6), 75–102.