The study looks at the sffectiveness of credit managemnt in salected mission hospitals in Kenya. It looks the four credit managent functions: Terms of credit, credit analysis, collection procedures and monitoring accounts receivables. Mission hospitals experienced very high levels of receivables making it difficult to operate.The study used the quantitative-descreptive research method of research.A pilot study was conducted to test the overal reliability and validity of the gathering tool.The research covered mission hopitals spread accross Kenya to help determine the effectivness of credit management.The study established that monitoring accounts receivable ratest highest and need s to be improved for better perfomance.Managements of accounts recivable remains a big challenge to mission hospitals. The study found out that there is need to work closely with institute of credit management to help set guidelines for effective management