Factors Influencing Sustainability of Microfinance Institutions in Kenya: A Case of Kenya Women Finance Trust

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Faithesther Wangechi Wambugu
John Karanja Ngugi

Abstract

Microfinance institutions indeed need to be self sustaining if they are to achieve their outreach potential providing rapid growth in access to financial services to poor people. However, sustainability is desirable as it allows MFIs to access the formal sector as a source of capital, rather than relying on subsidies to bring about growth. This study sought to investigate the factors influencing sustainability of microfinance institutions in Kenya. The study looked at the influence of factors such as Service delivery, branch network, staff training and capital adequacy. The research design used was a descriptive study of a population of 135 lower and middle managers from Kenya Women Finance Trust Deposit taking microfinance. A sample of 30% was selected using stratified random sampling.

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