Festus Mithi Wanjohi,Munyao, Josam Kimathi2022-04-012022-04-012021http://ir-library.ku.ac.ke/handle/123456789/23467A Research Proposal Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Master of Business Administration Degree-Finance Option of Kenyatta University, December, 2021SMEs in the Nairobi Central Business District, Nairobi County, Kenya, saw a significant drop in their net profit margins. The year-on-year decrease in net income in 2015 was 7%, the decrease in net income in 2016 was 15.6%, the decrease in net income in 2017 was 21.3%, and the decrease in net income in 2018 was 25.6%. Decreased profit margin also affected liquidity for the 2015-2019 period. When borrowing from microfinance institutions in 2018, only 21.23% was due to SMEs, compared to 37.25% in 2017 and 2016. In Nairobi Central Business District, Nairobi City, the penetration of microfinance services for SMEs is not yet well established. The main purpose of this study was to assess the impact of microfinance services on the growth of SMEs in the Nairobi Central Business District, Nairobi County, Kenya. The study objectives were; to determine the impact of micro credit, micro savings and micro insurance on the growth of SMEs in Nairobi City County, Kenya. The study was guided by the Information Asymmetry Theory, Financial Growth Life Cycle Theory, Stages of Growth Theory and Sustainability Theory. Causal research design was used. Primary data was collected from SMEs in 37, 101 target groups in the central business district of Nairobi using a semi-structured questionnaire. The stratified sample was used by 395 small businesses. Quantitative and qualitative analysis was used and data was generated using the Social Science Statistics Package. The significance test was performed with a 95% confidence interval. Studies show that SMEs need to be content with small loans due to the lack of collateral to secure huge loans, skills and personalities. It was clear that the majority of SMEs embraced the culture of saving in savings accounts at various financial institutions and saving through mobile banking platforms. All SMEs contacted have stated that they have been insured by a financial institution once in the last five years (2016-2020). The micro insurance clearly shows that small business owners want cheaper insurance. It's also clear that most people can't afford high insurance because they can't cover the liquidity and operating costs of the company. The majority said the insurance paid were beneficial, but the time it takes to make up for the loss is quite long. The study concludes that microcredit services are having a significant negative impact on the growth of SMEs. The study concluded that micro-savings and micro-insurance services have a significant positive impact on the growth of SMEs. The survey recommended that the government create an atmosphere in which SMEs can prosper and develop. Both SMEs and MFI need to be involved in the policy to avoid future disputes between the two companies. With more employment opportunities and more cash flow in the economy, this provides a window for growth and economic development.enMicrofinance ServicesGrowthSmall and Medium EnterprisesNairobi Central Business DistrictNairobi City CountyKenyaThesis