Co-operative movement is one of the highly valued strategies used to enhance resource mobilization and use. However, statistics on the study of factors of the performance of these co operatives has produced mixed results that calls for further research on the same. This summary sought to further examine the effects of loan default rate on the financial performance of 2NK Sacco society ltd in Kiambu county, Kenya. In this study, cross-sectional study design was applied. Secondary data from audited financial reports between 2019 and 2022 were collected and used for the analysis. Both descriptive and inferential statistics were used to analyze the relationship between the variables. From the findings it was established that loan default rate had a positive statistical significant effect to financial performance of the 2NK Sacco society group in Kiambu county.it was concluded that the loan default among the Sacco had a strong predictor of their financial performance. The study also recommended that the 2NK Sacco should put emphasis on ensuring members are able to repay their loans on time to enhance financial performance. The results were very significant and will go a long way to assist Saccos to enhance their financial performance by re-assessing their loan advancement and recovery strategy among their members.