| dc.description.abstract | MFls are organizations that provide a broad range of financial services such as deposits, loans, payments services, money transfers, and insurance to the poor and low-income households and their farm or non-farm micro-enterprises. The best practice (critical success factors(CSF approach of assessing MFIs sustainability and growth in the long run was an accepted method for corporate strategic planning which aims at identifying small number of factors that represent relationships among a set of interrelated variables. The study sought to establish whether the best practices were implemented by Microfinance Institutions in Kenya for the overall sustainability.
The study adopted survey research design for data collection in order to gather information on the best practices implemented by the Microfinance Institutions in Kenya. The population of the study was derived from all the forty three (43) institutions registered with the Association of Microfinance Institutions of Kenya (AMFI).Data collection was done through questionnaires. Data was analysed through descriptive statistics, mean and standard deviation. Data presentation was done through tables for easy understanding. Regression analysis was conducted to establish the relationship between critical success factors and sustainability of the Microfinance Institutions in Kenya.
The study concludes that microfinance institutions implemented best practices as requisite measures to enhance their competitiveness and ensure overall sustainability in the long run. However, there exist shortcomings when it comes to investing in staff training and development and customer education and sensitization. These are important facets in any organization looking for success since quality management was the driving force of other initiatives in the organization.
The study conclude that MFIs should adopt formalization and transparency in financial reporting product-delivery innovations, operational efficiency, sound financial management, financial market reforms, good governance and creation of value of network to achieve sustainability in the market. The study concluded that product-delivery innovations and creation of Value Networks were the most effective critical success factors for MFIs that influence sustainability of the institutions enabling the MFIs to achieve better financial performance, improve financial deliver, and improve shareholders value and firm profitability.The study further found that adoption of product-delivery innovations and creation of Value Networks with greatly influence success and sustainability of the MFIs. | en_US |
