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Factors influencing performance of :micro financial institutions in Makueni county, Kenya.

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Date
2014-07-10
Author
Musau, Sarah Mutinda
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Abstract
The micro-financial institutions in Kenya are operating in a competitive environment than before and the importance of strategic management cannot be overlooked. This is because it determines how an organization react to competition and other business environmental challenges. The way a microfinance institution reacts strategically to these challenges will determine its survival and even its performance. Therefore, the researcher sought to investigate fattors influencing performance of micro-financial institutions in Makueni County. The study employed descriptive survey design and used five micro financial institutions in Makueni County for data collection. The target population was 280 respondents while the sample size was 170 respondents. Questionnaires were used to collect data. Pilot study was carried out to check reliability and validity of instruments. Data was analysed by use of Statistical Package for Social Sciences (SPSS) computer software program, and was presented by use of charts and tables. Factor analysis was used to find the goodness of the data and to help reduce a large number of variables to a meaningful, interpretable and manageable set of factors. The findings indicated that marketing of products and services, information technology, staff training, organizational culture and competition affected the performance of micro financial institutions. Various recommendations were made that Mf'Is should become more aggressive by diversifying the marketing methods and strategies other than using Self Help Groups (SHG). Again, the government and non governmental organization should establish more Mf'Is to accommodate all the people who do not earn regular income and the government with other leT providers should make lCT skills and services available in rural areas and at affordable costs to enable customers reach their MFIs.
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http://ir-library.ku.ac.ke/handle/123456789/10337
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  • MST-Department of Business Administration [1919]

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