Challenges That Face The Operations Of Microfinance Institutions In Kenya: A Case Study Of Microfinance Institutions In Nairobi County.
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 9
Abstract
The growth of MFI can be measured in two folds sustainability and performance. The MFI act was enacted in 2006 this has brought the regulation on the licensing, supervision and establishment of MFI under the control of central bank of Kenya. The Act is to create an enabling environment that would promote sustainability and performance of MFI and at the same time protect customer’s interest. The study was anchored in two theories theory of innovation and financial intermediation theory with study variable being regulations, liquidity and technology. The study targeted MFI employees to provide the needed information for the study. The data was analysed using descriptive statistics, inferential statistics and SSPS version 24.0. The inferential statistics was employed to establish the relations that exist between the study variables. Pearson correlation matrix was used for predicting and describing the variables in terms of directions and magnitude while regression analysis was conducted at a level of 5%. The data analysis tools will be SSPS and the use of inferential statistics and simple tabulations and presentations of the report using spread sheets. The study established that the challenges that faces MFI and all the predictors as shown by beta coefficients: financial regulation (β = 0.271);liquidity (β = 0.241) and technology (β = 0.316). The implication is that financial regulation, liquidity and technology are major challenges that face MFI in Nairobi County. However, the study established there is a positive but statistically insignificant relationship (β =0.03, p= 0.660>0.05) between interest rates andMFI challenges. This implies that interest rates would not necessarily a challenge to MFI experiences.
Authors and Affiliations
Daniel Ouso Ombangi
Keywords
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