Wamalwa, NathanJagongo, Ambrose2020-01-302020-01-302018International Journal of Management and Commerce Innovations, ISSN 2348-7585 (Online), Vol. 5, Issue 2, pp: (638-643)2348-7585http://ir-library.ku.ac.ke/handle/123456789/20116Research articleMicrofinance is established in the economy for the economic benefit the low income group in the society who cannot be able to access the formal institutions that have many conditions regarding access to credit facilities. It is also established for purposes of alleviating poverty in the country. This paper presents background knowledge about loan portfolio management and firm performance of MFLs. The paper further provides a problem statement which comprises of challenges being faced by the MFLS institutions in Kenya, it progresses further to reviewing theoretical literature in support of the theme and empirical literature in the same geographical reach. The paper finally rests its case through presenting findings as a benchmark case study done in Uganda in MFls with similar studies in agreement with the benchmark study under findings and conclusions. Subsequently the paper provides insight for further research to be carried out under this area through providing a platform for research under conclusion and recommendations.enLoan portfolio managementFirm performanceBalance score card theoryLoan default.Article