Determinants that influence financial performance of microfinance institutions in Kenya: case study of Nairobi County

Abstract

According to (Lafourcade, Isern, Brown, & Mwangi, 2005), microfinance institutions in Sub-Saharan Africa include a broad range of diverse and geographically dispersed institutions offering financial services to low income clients, non-governmental organizations, non-bank financial institutions, cooperatives, rural banks, savings and postal financial institutions and an increasing number of commercial banks. (Hartungi, 2007) States that microfinance institutions playa vital role in the economic development of many developing countries. He further mentions that they offer loans and technical assistance in business development to low income communities in developing countries. (Hoque, 2011), suggest that microfinance institutions offer a variety of products, which include: remittances and transfers, payment services, insurance services and other ' financial products or services that are not offered by commercial banks to low income clients.