Effects of lending methodologies on financial performance of micro finance institutions in Kenya

Abstract

In spite of the developments and innovation in microfinance institutions today, their financial performance continues to be dismal due to high default risks. There is little that has been done to study and understand the impact of lending methodologies on the financial performance of microfinance institutions in Kenya. This study was guided by individual lending, group lending and gender based lending methodology as independent variables while financial performance was the dependent variable.