Microfinance institutions in Kenya: a mission drift or progression?

Abstract

Microfinance serves low income earners by offering a variety of financial services. This study examines whether sustainability of the Microfinance institution leads to a mission drift or a progression. The study measures sustainability by using the standard profitability ratios. This study utilizes data from 14 Microfinance Institutions in Kenya -assessed from 2007 to 2013. The findings on outreach and percentage of women indicate that the financial performance of a microfinance institution does not indicate a mission drift. Furthermore, the financial performance measures explain very little about the profit status of an institution.