dc.contributor.author |
Kalunda, Elizabeth |
|
dc.contributor.author |
Nduku, Beatrice |
|
dc.contributor.author |
Kabiru, John |
|
dc.date.accessioned |
2014-01-23T08:18:54Z |
|
dc.date.available |
2014-01-23T08:18:54Z |
|
dc.date.issued |
2012 |
|
dc.identifier.issn |
2222-1697 (Paper) |
|
dc.identifier.issn |
2222-2847 (Online) |
|
dc.identifier.uri |
http://41.89.227.156:8080/xmlui/handle/123456789/125 |
|
dc.description.abstract |
The pharmaceutical industry in Kenya consists of manufacturers, distributors and retailers, who all actively
support the Ministry of Health and other key players in developing the health sector. Kenya spends about 8% of
its GDP on health. Trade credit is created whenever a supplier offers terms that allow the buyer to delay
payment. This study aimed at to identifying the credit risk management practices adopted by pharmaceutical
manufacturing firms in Kenya. The study found out that the two most important factors considered in
establishing a credit policy are the financial stability of the customer and the existing credit policy. Majority of
the firms do not have a credit policy manual. The most widely used credit risk management practices are use of
debt collectors letters of credit, credit insurance and factoring of debt in that order. In dealing with difficult to
pay customers nearly all firms put the account on hold and stopped future sales till the account was settled,
(80%) engaged services of debt collectors, (43%) resorted to selling on cash basis. The 6C’s model of credit
appraisal was widely used. |
en_US |
dc.language.iso |
en |
en_US |
dc.publisher |
Research Journal of Finance and Accounting |
en_US |
dc.relation.ispartofseries |
Vol. 3;No. 5 |
|
dc.subject |
credit risk, credit risk management, pharmaceutical firms |
en_US |
dc.title |
Pharmaceutical Manufacturing Companies in Kenya and Their Credit Risk Management Practices |
en_US |
dc.type |
Article |
en_US |