The Determinants of Transformation of Micro-finance Institutions Into Deposit Taking Mfis in Kenya
Abstract
The purpose of this study was to determine the determinants of transformation of non-deposit
taking Micro Finance Institutions in Kenya into deposit taking micro-finance
institutions. The study specifically sought to find out the effect of commercialization,
self-sustainability and automation of customer products and services on the
transformation process.
The research design used was descriptive survey study. A census of 46 MFIs in Kenya,
excluding banks and insurance institutions were surveyed from the target population and
36 of them responded. The researcher used primary data which was obtained through
self-administered questionnaires with closed and open-ended questions. SPSS was used
to perform the analysis as it aided in organizing and summarizing the data. The analyzed
data was presented in tables, charts and graphs including frequency percentages.
The study established that the three determinants; commercialization, self-sustainability
and automation of customer products and services have a significant effect on the
transformation of MFIs, with self-sustainability as the strongest determinant of
transformation of MFIs. The study recommended that there should be adequate
motivation for Micro Finance Institutions to operate at most convenient environment for
them and to promote their transformation.
Citation
MBA ThesisSponsorhip
University of NairobiPublisher
School of Business, University of Nairobi
Description
The determinants of transformation of micro-finance institutions into deposit taking MFIs in Kenya