Mastering Debt Recovery and Collection Strategies for Financial Institutions in Kenya

Boost Recovery Rates and Reduce Loan Delinquency

Debt recovery is more than chasing unpaid balances. It requires strategy, skill, and compliance with regulations. This intensive training equips credit and finance professionals with tools to tackle non-performing loans (NPLs) and secure financial stability.

Course Overview: Strategic Loan Collection Skills

This training is designed for credit officers, loan recovery staff, branch managers, and legal officers. It focuses on the full debt recovery cycle, from prevention to enforcement. Participants learn ethical debt collection practices, negotiation tactics, legal remedies, and internal system strengthening.

Key Learning Objectives

By the end of the course, participants will:

  • Identify why clients default on loans.

  • Implement early preventive actions to minimize delinquency.

  • Use effective soft and hard debt recovery strategies.

  • Negotiate with borrowers for successful repayments.

  • Apply legal recovery tools within Kenyan frameworks.

  • Monitor portfolios with performance dashboards.

  • Uphold ethical practices that protect institutional reputation.

Detailed Course Modules

Module 1: Introduction to Debt Recovery

  • Causes of loan default

  • Impact of default on institutions and communities

  • Overview of the recovery cycle

Module 2: Preventing Loan Delinquency

  • Risk-based lending and credit appraisal

  • Early warning signs and borrower red flags

  • Educating clients for responsible borrowing

  • Monitoring systems and internal controls

Module 3: Practical Recovery Techniques

  • Reminders, calls, letters, and SMS

  • Field visits and in-person engagements

  • Repayment plan design and restructuring

  • Using guarantors and social pressure in SACCOs

Module 4: Communication and Negotiation Skills

  • Rapport building with difficult borrowers

  • Techniques for effective repayment conversations

  • Conflict-free negotiation strategies

  • Managing emotional and resistant clients

Module 5: Legal Framework and Enforcement

  • Debt recovery laws in Kenya

  • Use of demand letters and CRB blacklisting

  • Court processes, asset seizures, and collateral enforcement

  • Collaborating with external recovery agencies

Module 6: Portfolio Analysis and Recovery Metrics

  • Portfolio at Risk (PAR) calculations

  • Aging reports and recovery dashboards

  • Structured follow-up and workplan creation

  • Management and committee oversight roles

Module 7: Ethics and Best Practices

  • Adherence to CBK and SASRA guidelines

  • Professional and respectful collection conduct

  • Avoiding coercion and safeguarding reputation

  • Fostering a culture of responsible credit behavior

Module 8: Hands-On Practical Exercises

  • Drafting actionable repayment proposals

  • Role-plays for phone calls and field visits

  • Portfolio case studies and performance analysis

  • Team presentations on real-world scenarios

Who Should Attend This Course?

This course is ideal for:

  • Credit and Loan Recovery Officers

  • Loan Committee Members

  • Branch Managers and Finance Staff

  • Legal and Compliance Officers

  • Customer Relationship Managers

  • Risk and Internal Audit Staff

Course Format and Duration

Duration: 3 Days (Available both in-person and online)

  • Day 1: Introduction, Prevention, Recovery Techniques

  • Day 2: Negotiation, Legal Tools, Portfolio Monitoring

  • Day 3: Ethics, Role-Plays, Case Studies, Certification

 

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