Abstract: This study sought to establish the effect of strategic planning on the performance of deposit taking microfinance institutions in Kenya. The study was guided by these specific objectives; to establish the effect of budgetary plan strategy on performance of Microfinance institutions in Kenya, to find out the effect of objectives setting on performance of Microfinance institutions in Kenya, to establish the effect of management strategic decisions on performance of Microfinance institutions in Kenya and to determine the effect of marketing strategies on performance of Microfinance institutions in Kenya. The study was anchored in the resource-based theory, contingency theory, Asymmetric Information Theory and stakeholder theory. This study adopted descriptive survey research design. The target population of this study is the senior management staff and the junior staff of Kenya Women Finance trust head office.The study used census sampling method where the target population will form a sampling frame of 52 respondents. A structured questionnaire was used to collect primary data while the study also made use of secondary sources of information such as books, Microfinance reports and business journals. To test the validity and the reliability of the questionnaires pilot test was conducted before they are fully given to the respondents. The sample size of the study is 52 respondents.Data was analyzed using descriptive statistics done with the help of software program SPSS version 21 and presented using frequency distribution. In addition, measure of central tendency was applied to determine the relative importance of each of the two variables with respect to performance of microfinance institutions. Ethical was paramount during the entire process of the study. From the findings, results indicated that all predictor variables; budgetary plan strategy, objectives setting, management strategic decisions and marketing strategies, were important determinants of performance. Furthermore, the findings showed that budgetary plan strategy, objectives setting, management strategic decisions and marketing strategies positively associated with performance. Regression findings indicated that all independent variables; budgetary plan strategy, objectives setting, management strategic decisions and marketing strategies were statistically significant predictors of performance. It can be concluded that budgetary plan strategy, objectives setting, management strategic decisions and marketing strategies did have an effect on performance. The study recommends that Microfinance institution should put more focus on this strategies in order to succeed.
Keywords: budgetary plan strategy, objectives setting, management strategic decisions, marketing strategies.
Title: EFFECT OF STRATEGIC PLANNING ON PERFOMANCE OF DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN KENYA
Author: Mutunga Christine Mueni, Samson Nyang’au Paul
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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