Savings and Credit Cooperative Societies (SACCOs) are considered the closest alternative to commercial banks in providing financial services to previously unbanked or excluded segments of the public with a social approach to savings and credit. Policy makers and regulators have expressed concerns regarding the financial performance of SACCOs and the economic risks posed to the country. The majority of SACCOs have been confronted with significant issues such as non-performing and defaulted loans, which pose a risk to their financial performance. The risk is particularly pronounced in Public Sector Deposit-Taking SACCOs, which deem themselves too big to fail, relying on the potentiality of a government bailout in case of financial challenges. Consequently, these SACCOs tend to relax their loan disbursement management. However, limited research has explored the effect of loan disbursement management on the financial performance of Public Sector Deposit-Taking SACCOs in Kenya. As a result, this study aimed to investigate the effect of loan disbursement management on the financial performance of Public Sector Deposit-Taking SACCOs in Kenya. The study was guided by CAMEL model and adopting a descriptive research design, the study utilized secondary data collected from financial reports submitted to SASRA. The target population comprised 36 Public Sector Deposit-Taking SACCOs in Kenya registered by SASRA, from which a sample of 12 DT-SACCOs was purposively selected. Simple regression analysis was employed to analyze the data. Both descriptive statistics was used in the data analysis with the help of Statistical Package for Social Sciences (SPSS 27). The findings revealed that loan disbursement management (β = 0.483; p =0.000) had a significant positive effect on financial performance of DT-SACCOs in the public sector in Kenya. Consequently, the study concluded that the establishment and maintenance of robust loan disbursement management are imperative for DT-SACCOs aiming to improve their financial performance. The study recommended that that Deposit Taking SACCOs should prioritize improving loan disbursement management in order to enhance the overall financial health of the SACCOs.