Microfinance in Africa - Interest Rate, Financial Leverage, and Financial Performance: Experience and Lessons in Kenya

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dc.contributor.authorKarugu, Kahihu Peter
dc.contributor.authorMuturi, Wachira D.
dc.contributor.authorMuathe, Stephen M. A.
dc.date.accessioned2021-06-14T09:11:02Z
dc.date.available2021-06-14T09:11:02Z
dc.date.issued2021
dc.descriptionAn Article Published in Journal of Applied Economics and Businessen_US
dc.description.abstractThe purpose of the study was to investigate microfinance in Africa, the interplay of interest rate, financial leverage and financial performance, experiences, and lessons from microfinance institutions in Kenya. The study employed positivism philosophy as the research philosophy and used explanatory research designs. The targeted population was all the thirteen registered Deposit Taking microfinance institutions in Kenya. The sampling method that was used was the census approach and used secondary data from MFI’s (Microfinance Institutions) published accounts for the period between 2014-2018. The study was anchored on 3 theories: Resource-Based theory, Dynamic Capability Theory, and International Fisher Effect theories. Various diagnostic tests were applied to ensure we had a suitable empirical model. Data analysis was carried out using both descriptive and inferential statistics using panel data multiple regression analysis. The study results indicated that interest rates and financial leverage have a positive effect on the financial performance of microfinance institutions. The MFIs owners and managers should put in place risk management measures such as risk identifications to prevent the MFIs from the effect of interest rate and financial leverage as they affect their financial performanceen_US
dc.identifier.issn1857- 8721
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/22337
dc.language.isoenen_US
dc.publisherEducation and Novel Technology Research Associationen_US
dc.subjectFinancial performanceen_US
dc.subjectFinancial leverageen_US
dc.subjectInterest rateen_US
dc.subjectKenyaen_US
dc.subjectMicrofinance institutionsen_US
dc.titleMicrofinance in Africa - Interest Rate, Financial Leverage, and Financial Performance: Experience and Lessons in Kenyaen_US
dc.typeArticleen_US
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