| dc.description.abstract | MFIs have been providing financial services to their members with little competition
from other players in the financial market. However, the entry of other players in the
financial market, targeting the same clientele that had been traditionally considered as the
territory of MFIs and introducing services and products especially tailor-made to out-
compete MFI's products, coupled with the liberalization of the financial market and the
economy at large, all have strained the performance of the MFIs. In light of this, many
MFIs have implemented corporate governance measures and practices in an effort to
improve their performance and make them more relevant in their business and better able
to compete in the financial markets in which they operate. This study sought to analyze
the effect of the adoption of these corporate governance practices on the financial
performance of deposit taking MFIs. The research was based on deposit taking MFIs in
Kenya. The target population was the 6 MFIs registered with the Central Bank of Kenya
as at 30 June, 2011. A survey of 6 respondents drawn from the 6 MFIs registered with
the CBK was taken for the study. Data was collected using a structured questionnaire
method. The responses from cross-functional sample group were analyzed using
descriptive statistical techniques in form of frequency distribution tables, percentages,
paretto, and computer packages. The expected output was to establish whether the
adoption of corporate governance practices has any relationship with the financial
performance MFIs, and therefore come up with recommendations that will help in the
enforcement of these practices by the relevant regulatory authorities. The findings were
that corporate governance influences the financial performance of the deposit taking
MFIs. Transparency and disclosure measures were found to have a greater influence on
the financial performance of the deposit taking MFIs. | |
