International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 5, May 2015 Licensed under Creative Common Page 1505 http://ijecm.co.uk/ ISSN 2348 0386 EFFECTS OF LAND ACT 2012 ON RECOVERY OF DELINQUENT LOANS BY COMMERCIAL BANKS IN KENYA A SURVEY OF COMMERCIAL BANKS IN NAKURU TOWN D. M. Gikurumi School of Human Resource Development Jomo Kenyatta University of Agriculture and Technology, Kenya dgikurumi@gmail.com S. T. Ngahu School of Human Resource Development Jomo Kenyatta University of Agriculture and Technology, Kenya solomon.ngahu3@gmail.com D. Wanyoike School of Human Resource Development Jomo Kenyatta University of Agriculture and Technology, Kenya danwanyoike@gmail.com Abstract The Kenya’s Land Act 2012 spells out the legal procedures that ought to be followed by banks before they dispose a defaulter’s land. The Act has been observed to be a major hindrance to recovery of delinquent loans by banks due to the bureaucratic process that must be followed in the recovery process. It is against this backdrop that this study was carried out with the objective of establishing how spousal consent in land disposal affects recovery of delinquent loans. The study was limited to the 30 commercial banks operating in Nakuru town, Kenya. The study adopted a cross-sectional research design. The target population comprised of 154 credit officers working in these banks. A sample of 61 respondents was drawn using stratified random sampling method. A structured questionnaire was employed to collect data. A pilot study was conducted prior to the main study in order to assess both the reliability and validity of the research instrument. Descriptive analysis followed by inferential analysis was conducted on the collected data using SPSS. At the end, findings and implications were presented. Keywords: Banks, defaulted loans, delinquent loans, land act 2012, spousal consent