Abstract:
A revolving fund is generally setup in small amounts with an appropriation of seed money from the
general fund which must exhibit the self-sustaining capacity. The Kenyan Government initiated the Youth
Enterprise Development Fund in 2006 as a strategy of addressing youth unemployment. The Women
Enterprise Fund on the other hand, was formed as a proactive government response to the dire challenges
facing women of Kenya. Despite the importance of revolving funds in Kenya and developing economies, the
repayment rate has been relatively low. This study examined the effect of client appraisal and loan monitoring
strategies on the repayment of revolving funds in Kenya. The study focused on the government revolving funds
in Kenya that were disbursed from 2010 to 2019, and it was carried out within 18 months from January 2020
to June 2021. The target population was the Youth officers in the constituencies and WEF Officers in the 47
counties. The study utilized a correlational research design, and a purposive sampling approach. Data was
collected using questionnaires, and analyzed using SPSS version 23. The study established that business
assessment visits had a positive and significant effect on the repayment performance of revolving funds
(coefficient 5.473, P-000), frequency of training before disbursement had a positive and significant effect on
repayment performance of revolving funds, (coefficient 2.715, P-0.002), and the type of training offered
before disbursement had a positive and significant effect on repayment performance (coefficient 7.548, P000). On the other hand, that the number of monitoring visits had a positive and significant effect on
repayment performance of revolving funds in Kenya, (coefficient 2.327, P-0.023). Also, the number of arrears
report had a positive and significant effect on repayment performance of revolving funds in Kenya,
(coefficient 2.842, P-0.02). The study concluded that there exists a strong positive relationship between client
appraisal strategies and repayment performance of revolving funds in Kenya, while loan monitoring
strategies had a significant positive effect on repayment performance of revolving funds in Kenya.
