ABSTRACT The main purpose of the study was to determine the“The Effects of Credit Policy on Accounts Receivables Management: The case of Victoria SACCOS”. Specific objective of the study were: to examine the credit policy of Victoria SACCOS, to determine the extent of credit default of Victoria SACCOS, and to determine challenges facing the credit policy of Victoria SACCOS. This study is designed to be used by Victoria SACCOS and other researchers who will be interested in understanding The Effects of Credit Policy as a tool of Managing Accounts Receivables. The major concern is to highlight what should be expected from the credit policy when conducting business in credit terms. Apart from determining the effects of credit policy, the researcher intended to determine ways that could be implemented to achieve the results of the policy; problems encountered during implementation, and, also highlight the credit policy of the respective organization. Both qualitative and quantitative data analysis technique were applied. It was revealed that good implementation of credit policy reduces costs associated with managing account receivable. From data collected, analyzed and discussed the researcher came up with conclusion and recommendation. He recommended on how to obtain optimal implementation of credit policy which will minimize customers default from loan recovery.