Effectiveness Of Debt Collection Strategies Employed by Information Communication Technology Companies In Kenya: An Analysis Of TELKOM KENYA

Abstract

The study sought to assess the effectiveness of debt collection strategies employed by Information Communication Technology Companies in Kenya. Specifically the study: Evaluated the effect of credit control policy; Assessed the effect of credit control systems and Analyzed the effect of credit control structure on debt collection in Telkom Kenya. Descriptive research design was adopted. The study population consisted of all the 47 employees in credit control departments in Telkom Kenya. The primary data was collected by self-administered questionnaire consisting of open and closed ended questions on a likert-scale rating. Data was analyzed using SPSS version 17, and presented in form of mean, frequency tables, standard deviation and a regression model. The studies established that credit control, credit control systems and credit control structure have positive correlation on debt collection performance with the credit control policy with the highest effect. The result indicates that credit control policy had the highest coefficient of 0.380 thus has the largest influence on debt collection. The second most important variable was credit control systems with a coefficient of 0.354. The least important predictor of these three variables is credit control structure with a coefficient of 0.307. The research recommends that ICT Organizations ensure that they have an effective credit controls systems whether manual or automated to ensure that accurate data is captured and complete reports

generated and shared. The research also recommends that Credit control structures should be properly manned with adequate and competent staff to enable effective collection of debt.