International Journal of Economics and Finance Volume 1, Issue 2, 2013 http://www.ijsse.org ISSN 2307-6305 Page | 1 FACTORS INFLUENCING ACQUISITION OF STRESSED ASSETS AND ASSET SECURITIZATION INTO THE FINANCIAL MARKET IN KENYA Henzlon Kamau Waithaka Student, Jomo Kenyatta University of Agriculture and Technology KENYA Dr. Karanja Ngugi Lecturer, Jomo Kenyatta University of Agriculture and Technology KENYA CITATION: Waithaka, K. H. & Ngugi, K. (2013), Factors Influencing Acquisition of Stressed Assets and Asset Securitization into the Financial Market in Kenya, International Journal of Social Sciences and Entrepreneurship. Vol.1, Issue 2, 2013, 1 (2), 529-539 ABSTRACT Securitization of future receivables has become increasingly popular in Kenya with many Kenyan organizations using this route for raising and investing funds. Banks, financial institutions, insurance firms, stock brokers, housing finance companies, power generators and distributors have already adopted asset securitization. The purpose of this study was to investigate the factors influencing the acceptance of the acquisition of stressed assets (Bad Debts) and asset securitization for the purposes of liquidity mobbing to attain financial stability in the financial market in Kenya. The study was guided by four research objectives: determining the organizational factors that influences the Acquisition of stressed Assets and Asset securitization in the financial market in Kenya; examining the business environment factors that influence acquisition of stressed assets and Asset Securitization in the financial market in Kenya; establishing the effects of Government policies, control, and regulations on acquisition of stressed assets and asset securitization in the financial market in Kenya and to investigate the adequacy of IAS 39 as financial instrument on recognition and measurement. The study adopted a descriptive research design. The population of the study comprised of the finance officers from