| dc.description.abstract | The main goal of every Microfinance Institution (MFI) is to operate profitably in order to maintain its stability and improve growth and sustainability. This study focused on the financial determinants of MFIs performance in Kenyan Coast. The survey study of Jomvu Kuu community based MFIs were preferred because the Wajomvu community used a particular type of micro-finance institution, the Financial Services Association (FSA) model under which local inhabitants owned and operationalized the institution. Descriptive research design was used with a target population of 65 members of Nanimo and Jumbe MFIs in Jomvu Kuu from which a sample of 60 members was identified. Questionnaires were used to collect primary data. The data collected was analyzed using descriptive statistics to determine the mean, standard deviation, minimum and maximum of the various variables. The findings indicated that loan and savings portfolio affects the performance of MFIs, this was because savings ensured liquidity of the MFIs and prudent allocation of loans Group lending, effective loan portfolio management and diversification of loan portfolio enhances the performance of MFIs. There was no direct relationship between the dividend policy and performance of MFIs as the role of microfinance institutions was poverty reduction and wellbeing improvement of the people who could not access financial service from commercial banks. Therefore, the management of the MFIs should identify innovative modes of savings, seek for further financing, apply efficient and effective credit risk management and adopt a dividend policy in order to become more competitive. | en_US |
