| dc.description.abstract | Over the last five years, the country has witnessed a tremendous increase in the number
of the Deposit Taking Microfinance Institutions. The objective of this study was to find
out whether there exists a relationship between lending interest rates and the financial
performance of Deposit Taking Microfinance Institutions in Kenya. The study involved
collecting secondary data from Central Bank of Kenya, individual Deposit Taking
Microfinance Institutions and the Association of Microfinance Institutions in Kenya.
Consequently data for nine DTMs was analyzed for five years (2009-2013) using
multivariate regression model. The study found out that a strong relationship exists
between lending interest rates and financial performance of DTMs. To test the
significance of the findings, analysis of variance (ANOVA) was done. The research
recommends that DTMs should judiciously manage their interest rate to improve their
financial performance since it has a positive effect on their financial performance and
also recommends for income source diversification. | en_US |
