AN ANALYSIS OF THE FACTORS AFFECTING LOAN UTILIZATION AMONG ADMINISTRATION POLICE OFFICERS IN NAKURU COUNTY, KENYA

Abstract

In Kenya, the number of police officers accessing loans has been increasing significantly from only 12,000 officers in the year 2000 to 32,000 in the year 2012. Out of these only 62% are able to utilise properly the loans and able to repay within the prescribed time and therefore this tremendous increase does not match well on with its efficiency .The concept of police officer’s loan utilisation has not been fully described and analysed.Therefore, this study was aimed at analysing the factors affecting loan utilisation among Administration Police Officers. Specifically, the study investigated the effect of frequent transfer of police officers on loan utilisation, the effect of investment site on loan utilisation, the effect of officer investment knowledge on loan utilisation and the effect of employers support on loan utilisation. The study was informed by theory of self-efficacy. The study target population was 1,474 police officers in Nakuru county. Yamane formula was used to get a sample size of 314 where systematical sampling techniques was used to select the respondents. Both primary and secondary data, both in quantitative and qualitative nature, was used. Structured questionnaire was used to collect primary data which was self administered. Descriptive statistics such as mean and standard deviation and inferential statistic such as Pearson correlation and multiple regression model was used in analyzing data. The study findings showed that there ware significant correlation between frequent transfer on police officer, officers kwowledge, investment site and employers support on loan utiliation.