Browsing by Author "Mutebi Deo"

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    Assessing The Credit Practices of Vivo Energy in Central Region, Uganda
    (Makerere University Business School, 2025-11-22) Mutebi Deo
    This study assessed the credit practices of Vivo Energy Uganda in the Central Region, with particular emphasis on the existing credit practices, the challenges affecting their effectiveness, and strategies for improving credit management. The study was motivated by persistent concerns regarding delayed payments, increasing receivables, liquidity constraints, and inconsistencies in the implementation of credit policies despite the company's structured credit approval processes. A quantitative research approach employing a descriptive cross-sectional survey design was adopted. Data were collected from 164 respondents drawn from Vivo Energy staff and dealer station managers using structured questionnaires. The data were analysed using the Statistical Package for Social Sciences (SPSS Version 27), employing descriptive statistics including frequencies, percentages, means, and standard deviations. The findings revealed that although Vivo Energy has relatively effective credit approval procedures (Mean = 3.85) and follow-up mechanisms for defaulting dealers (Mean = 3.82), its overall credit practices were rated below average (Grand Mean = 2.59). Respondents identified the absence of a clearly documented credit policy, unrealistic repayment terms, weak receivables management, inconsistent enforcement of credit policies, and inadequate monitoring systems as major weaknesses. The study further established that ambiguous credit terms, delayed dealer payments, lack of automated credit management systems, bureaucratic approval processes, and external economic factors such as inflation and fuel price fluctuations significantly constrain effective credit management (Grand Mean = 4.29). To address these challenges, respondents strongly supported regular review of credit policies, implementation of automated credit monitoring systems, staff capacity building, improved communication with dealers, risk-based dealer segmentation, dealer education, stronger enforcement of repayment rules, and the introduction of incentives for timely repayment (Grand Mean = 4.14).The study concludes that while Vivo Energy Uganda has established some fundamental credit management structures, substantial improvements are required to strengthen policy formulation, automation, credit monitoring, and enforcement to enhance liquidity and reduce credit risk. It recommends the development of a comprehensive written credit policy, investment in integrated digital credit management systems, continuous staff training, risk-based credit allocation, and enhanced dealer engagement to improve the company's overall credit performance and financial sustainability.