Influence of marketing strategies on growth of Microfinance Institutions in Kenya

Abstract

The purpose of this study was to establish the influence of marketing strategies on growth of micro finance institutions in Kenya. This study undertook a descriptive survey of the thirteen micro-finance institutions in Kenya. The study findings indicated that most of these microfinance firm’s adopted relevant marketing strategies especially on service oriented focus putting a greater emphasis on various marketing mix elements that is product/ service, price, place, promotion, people, processes and physical scape. The study findings indicated that most of these firms had automated their operations to increase and enhance quality service delivery amongst its clientele. The study noted that these firms were classified as small medium & large. The findings indicated that there has been enormous growth in the industry. Industry parameters of growth included customer deposits, loan portfolio (Net), Return on assets, return on shareholder funds, number of branches and number of staff as well as pre-tax profits. The study had challenges of time and resource constraints in its undertaking further research need be undertaken to undertake a comparative analysis with other bank institutions.