Course Overview

This training equips credit and loan professionals with the skills to manage loan delinquencies and restructure distressed loans. Learn how to reduce non-performing loans (NPLs), engage borrowers effectively, and stay compliant with Kenyan regulations.

Participants will gain practical tools to assess delinquency causes, track loan performance, segment risk, and implement recovery strategies while preserving client relationships.

Course Objectives

By the end of this course, participants will be able to:

  • Understand the causes and impact of loan delinquency

  • Use data and KPIs to monitor overdue loans

  • Design borrower engagement and recovery strategies

  • Apply legal and ethical approaches to loan recovery

  • Evaluate loan restructuring options effectively

  • Reduce NPLs while maintaining member trust

Course Content

Module 1: Introduction to Loan Delinquency

  • Causes of default: internal vs. external

  • Impact on liquidity, profitability, and SACCO image

  • Definitions: delinquency, default, write-offs

Module 2: Monitoring and Early Warning Systems

  • Key indicators (PAR, default rates)

  • Data analytics and trend tracking

  • Red flags and real-time follow-ups

Module 3: Strategies for Delinquency Management

  • Segmenting borrowers

  • Soft vs. hard recovery tactics

  • Role of guarantors, collateral, and ethics

Module 4: Effective Communication and Negotiation

  • Handling difficult conversations

  • Negotiating repayment plans

  • Field visits and documentation

Module 5: Loan Restructuring Techniques

  • When and how to restructure

  • Rescheduling, refinancing, consolidation

  • Assessing post-restructure repayment capacity

Module 6: Legal and Regulatory Framework

  • SASRA and CBK compliance

  • Provisioning, CRB, and legal action

  • Audit readiness and proper documentation

Module 7: Portfolio Management and Strategy

  • Aligning credit policies with delinquency trends

  • Staff roles and accountability

  • Case studies and data-led decisions

Module 8: Practical Simulation and Reporting Tools

  • Group work on rising delinquencies

  • Drafting restructuring proposals

  • Reporting tools and peer reviews

Target Audience

This course is ideal for:

  • Credit and Loan Officers

  • Recovery and Debt Collection Teams

  • Branch and Credit Managers

  • Risk and Compliance Officers

  • SACCO Board and Credit Committee Members

  • Financial Analysts and Internal Auditors

Course Duration

  • Day 1: Modules 1–3

  • Day 2: Modules 4–6

  • Day 3: Modules 7–8 (interactive group work, reporting, and certification)

 

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