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- W3088332544 abstract "The purpose of the study was to establish the moderating effect of interest rate capping on the relationship between domestic credit lending and growth of MSME firms in Uasin Gishu County in Kenya. The specific objectives of the study included; to determine the relationship between commercial bank credit lending and growth of the MSME firms in Uasin Gishu County in Kenya, find out the relationship between informal lenders credit lending on the Growth of the MSME firms in Uasin Gishu County in Kenya evaluate the moderating effect of interest rate capping on the relationship between domestic credit lending and Growth of MSME firms in Uasin Gishu County in Kenya. The study is anchored on loanable funds theory, abstinence theory and Agio theory. The study adopted an explanatory research design with a target population of 204 from management team, accounting and finance team as respondents drawn from 102 agro processing MSMEs. The study adopted census enquiry to arrive at the respondents’ size of 204 respondents. Data was collected using closed ended questionnaires designed by 5 point likert scaling. Data was analyzed using descriptive and inferential statistics using SPSS version 24. The types of domestic credit lending under study jointly explained 60.3 percent variation in growth of MSMEs. This showed that considering the two independent variables commercial bank credit lending and informal lenders credit lending , there is a probability of 54.7 percent (R 2 =0.547) v ariation in the growth of MSMEs. However, with the interest rate capping as a moderator, the variables jointly explained 60.7 percent (R 2 = 0.607) variation in growth of MSMEs. Therefore the study concludes that interest rate capping significantly moderates the relationship between domestic credit lending and growth of MSMEs. All the domestic credit lending types are significantly related to growth of MSMEs. In this regard the government needs to enforce strict monetary and fiscal measures for regulating interest rate to make domestic credit affordable to borrowers. Besides that, MSMEs, should put strategies of building a credit history and lower domestic credit lending agents perceptions of risk associated with this type of lending to increase their access to credit and performance of the MSMEs. Key Words : Interest Rate Capping, Domestic Credit Lending, Growth of MSMEs CITATION: Serem, J. K., Nyangau, A., Kimutai, G., & Onyango, R. O. (2020). The moderating effect of interest rate capping on the relationship between domestic credit lending and growth of micro, small and medium-sized enterprises in Uasin Gishu County, Kenya. The Strategic Journal of Business & Change Management , 7(3), 1618 – 1642." @default.
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- W3088332544 date "2020-09-25" @default.
- W3088332544 modified "2023-09-27" @default.
- W3088332544 title "THE MODERATING EFFECT OF INTEREST RATE CAPPING ON THE RELATIONSHIP BETWEEN DOMESTIC CREDIT LENDING AND GROWTH OF MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES IN UASIN GISHU COUNTY, KENYA" @default.
- W3088332544 doi "https://doi.org/10.61426/sjbcm.v7i3.1767" @default.
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