INFLUENCE OF FINANCIAL PERFORMANCE ON FINANCIAL SUSTAINABILITY OF MICROFINANCE INSTITUTIONS IN KENYA

Abstract: The study sought to find out the influence of financial performance on financial sustainability of MFIs. This study was conducted through descriptive survey research design. The specific objective was to find out the determinants of financial sustainability of micro finance institutions in Kenya. The target population of this study was all the microfinance institutions in Kenya. A list of all the 44 Microfinance Institutions obtained from the Association of Microfinance Institution formed the sampling frame. Census technique was used because of their small numbers in the population. Linear regression was also carried out to establish into determinants of financial sustainability of microfinance institutions in Kenya. The study used SPSS version (20) to conduct analysis. The study concluded that financial performance was positively but insignificantly associated with financial sustainability. The study also concluded that there exist a positive relationship between financial performance and financial sustainability. Improving financial performance would improve the financial sustainability as this facilitates asset growth. Increased profits lead to increased concentration which leads to sustainability. Keywords: financial performance, financial sustainability, microfinance institutions. Title: INFLUENCE OF FINANCIAL PERFORMANCE ON FINANCIAL SUSTAINABILITY OF MICROFINANCE INSTITUTIONS IN KENYA Author: Dinah Nabwonya Wafula, Dr. Shedrack Mbithi Mutua, Mr. Maniagi Gerald Musiega International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Research Publish Journals

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