FINANCIAL OUTREACH AND FINANCIAL SUSTAINABILITY OF LICENSED DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN NAIROBI CITY COUNTY, KENYA
DOI:
https://doi.org/10.47604/ijfa.1179Abstract views: 650
PDF downloads: 626
Keywords:
Breadth of Outreach, Depth of Outreach, Financial SustainabilityAbstract
Purpose: The purpose of this study was to investigate the relationship between financial outreach and financial sustainability of deposit taking microfinance institutions in Nairobi County, Kenya.
Methodology: The study employed a positivism research philosophy to determine the relationship between financial outreach and financial sustainability. A population of 13 licensed Deposit Taking Microfinance Institution was considered for this study. Census method was preferred due to small number of target population. A static Panel linear regression model with fixed effect was developed for both operating self-sufficiency and financial self-sufficiency. Secondary data was obtained from Central Bank of Kenya from audited financial statements. Inferential analysis method was employed using Stata statistics software then descriptive statistics tool such as mean and standard deviations were used. several diagnostic tests were conducted namely: normality, multicollinearity, heteroscedasticity, serial correlation, stationarity and Hausman.
Results: The study found that number of active clients (breath of outreach) had statistically significant relationship; Average loan size (depth of outreach) had insignificant; age of firm (experience of institution) had insignificant relationship on financial sustainability of DTMFIs in Nairobi County, Kenya. The moderating effect between credit risk management (portfolio at risk) and breadth of outreach (number of active clients) was positive while portfolio at risk and experience of institution (age) and depth of outreach (average loan size) was negative on the relationship between financial outreach and (OSS and FSS) financial sustainability. Further, loan loss provision coverage had positive interaction with number of active clients, age, and average loan size on the relationship between financial outreach and financial sustainability of DTMFIs in Nairobi County, Kenya.
Unique contribution to theory, practice and policy: The study recommended that the government through Central Bank of Kenya should formulate policies that enhance savings with DTMFIs and therefore encourage financial inclusion. Further, DTMFIs should engage in vigorous financial education to boost financial facilities’ awareness to boost the breadth of outreach and get involved in information collection and sharing to mitigate credit risk.
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References
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Akhter, N. (2018). The Impact of Liquidity and Profitability on Operational Efficiency of Selected Commercial Banks in Bangladesh: A Panel Data Study. Double Blind Peer Reviewed International Research Journal, 18(7).
Akoglu, H. (2018). User’s Guide to Correlation Coefficients. Turkish Journal of Emergency Medicine, (18), 91–93.
Ali, K. (2013). The Relationship between Financial Sustainability and Outreach of Microfinance Institutions in Kenya. Nairobi.
Alibuhtto, M., & Peiris, T. (2015). Principal Component Regression for Solving Multicollinearity Problem.
Ameer, A. (2015). Outreach Performance and Financial Sustainability of Interest-free Microfinance Iinstitutions in Alappuzha, Kerala. Sai Om Journal of Commerce & Management, 2(8), 10–16.
AMFI. (2014). Sector Report on the Microfinance Sector in Kenya.
Arodi, J. O. (2013). The Relationship between Outreach and Financial Sustainability.
Ayele, G. T. (2015). Microfinance Institutions in Ethiopia, Kenya and Uganda: Loan Outreach to the Poor and the Quest for Financial Viability. African Development Review, 27(2), 117–129. https://doi.org/10.1111/1467-8268.12128
Balling, L. W., & Hvelplund, K. T. (2020). Design and Statistics in Quantitative Translation ( Process ) Research Design and Statistics in Quantitative Translation ( Process ) Research. Translation as a cognitive activity.
Bayai, I. (2017). Financing Structure and Financial Sustainability: Evidence from Selected Southern Africa Development Community Microfinance Institutions. University of Stellenbosch.
Bayai, I., & Ikhide, S. (2016). Life Cycle Theory and Financial Sustainability of Selected Sadc Microfinance Institutions. Proceeding of the Austrailia-Middle East Conference on Business and Social Sciences, 550–562.
Born, Benjamin; Breitung, J. (2010). (2010). Testing for Serial Correlation in Fixed-Effects Panel Data Models.
Catherine, W. (2016). Effect of Regulation on the Financial Performance of Microfinance Banks in Kenya:A Survey of Microfinance Banks in Nairobi. KCA.
CBK. (2011). Risk Management Survey for the Banking Sector.
CBK. (2012). Bank Supervision Annual Report.
CBK. (2013). Bank Supervision Annual Report.
CBK. (2014). Bank Supervision Annual Report.
CBK. (2015). Bank Supervision Annual Report.
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Chemining’wa, A. (2013). The Relationship between Mfi Outreach Services and Financial Sustainability in Kenya.
Chikaza, Z. (2015). Analysis of financial sustainability and outreach of Microfinance Institutions ( MFIs ) in Zimbabwe : case study of Harare.
Clementina, K., & Isu, G. (2015). Microfinance Banks Operations in Nigeria , Constraints and Suggested Solutions : An Evaluation. Global Journal of Contemporary Research in Accounting, Auditing and Business Ethics (GJCRA), (2), 312–331.
Creswell, J. (2014). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (fourth). Thousand Oaks: SAGE Publications.
Czarnowske, D., & Stammann, A. (2020). Inference in Unbalanced Panel Data Models with Interactive Fixed Effects.
Dessalegn, S. (2018). Assessment of Outreach and Financial Sustainability of Microfinance Institutions A Case Study of Omomicro Finance Institution. St.Mary University.
Donou-Adonsou, F., & Sylwester, K. (2016). Financial Development and Poverty Reduction in Developing Countries: New Evidence from Banks and Microfinance Institutions.Review of Development Finance,6(1), 82–90.
Dube, H., & Matanda, E. (2015). The Downfall of the Micro Lending Businesses in Zimbabwe: Causes and Remedies. International Review of Research in Emerging Markets and the Global Economy (IRREM) An Online International Research Journal, (4), 2311–3200.
Elrahman, A., & Saaid, E. (2015). The Regulatory and Supervision Framework of Microfinance in Kenya. International Journal of Social Science Studies, 3(5), 123–130.
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Fekadu, M., & Marthinus, C. (2017). Panel Data Analysis of the Proposed Monetary Union in the Southern African Development Community. Journal of Economics and Business.
Gashayie, A. (2015). Factors that Affect Financial Sustainability of Microfinance Institution : Literature Review, 7(7), 223–229.
George, O. (2017). Micro-finance and the Poverty Question : A Historical Perspective, 3(2), 93–113.
Greene and Hernsher. (2010). Models for Panel Data.
Hansen, B. (2018). Bootstrap Model Averaging Unit Root Inference.
Harelimana, J. B. (2017). The Determinants of Financial and Operational Sustainability of Microfinance Institutions: Case Study of Clecam-Ejoheza Ltd. Global Journal of Management and Business Research: C Finance, 17(4).
Henock, M. (2019). Financial Sustainability and Outreach Performance of Saving and Credit Cooperatives : The case of Eastern Ethiopia. Asia Pacific Management Review, 24(1), 1–9.
Hossain, K. &. (2016). Financial Sustainability of Microfinance Institutions ( MFIs ) of Bangladesh. Developing Country Studies, 6(6), 69–78.
Hussain, H., Shaheen L., & Shahid, M. A. (2018). Microfinance Ngos in Pakistan: Outreach and Sustainability. International Journal of Accounting and Financial, 8(2), 17–26.
IMF, Responsability. (2016). Microfinance Market Outlook.
Islam, M. (2017). Effects of Musharakah(Partnership) Contracts on the Financial Performance of Islamic Banks in Kenya. International Journal of Advanced Engineering and Management Research, 2(3), 400–411.
Jaffery, A., & Mamoon, D. (2017). Socio-economic Perspective of Microfinance as a poverty Reduction Tool. In Proceedings of 4th International Conference of Business Management.
Joshi, H. (2012). Multicollinearity Diagnostics in Statistical Modeling and Remedies to deal with it using SAS. Pharmaceutical Users Software Exchange.
Kagoyire, A., & Shukla, J. (2016). Effects of Credit Management on Performance of Commercial Banks in Rwanda (A Case study of Equity Bank Rwanda Ltd). International Journal of Business and Management Review, 4(4), 1–12.
Karanja, A. M. (2014). Relationship Between Outreach and Financial Performance of Deposit Taking Micro Finance Institutions in Kenya.
Kaur, P. (2014). Outreach and Sustainability of Microfinance Institutions in India in Pre and Post Andhra Pradesh Microfinance Crisis in Context of South Asia. Global Journal of Finance and Management, 6(6), 569–574.
Kibui, N. (2014). Effects of Credit Risk Management on Financial Performance of SACCOS : A Case Study of Harambee SACCO. InternationalAcademic Journal of Information Sciences andProjectManagement, 1(3), 157–172.
Kinde, B. A. (2012). Financial Sustainability of Microfinance Institutions (MFIs) in Ethiopia. European Journal of Business and Management, 4(15), 2222–2839.
King, M. (2015). Kenya’s Financial Transformation in the 21st Century.
Korir, S. (2014). The Effect of Credit Risk Management on Financial Performance of Deposit Taking Microfinance Institutions in Kenya. Nairobi.
Kothari, C. (2004). Research methodology methods and Techniques (second rev). New Age International limited.
Kubai, E. (2019). Reliability and Validity of Research Instruments.
Mackie, P. et al. (2015). Geography and Planning Microfinance and Poverty Alleviation in Ethiopia. Addis Ababa.
Mago, S. (2013). Microfinance In Zimbabwe : A Historical Overview. Mediterranean Journal of Social Sciences, 4(14), 599–608.
Marr, A. &Churchill, S. (2017). Sustainability and Outreach : A Comparative Study of MFIs in South Asia and Latin America & the Caribbean. Bulletin of Economic Research, 69(October).
Marwa & Aziakpono. (2015). Financial Sustainability of Tanzanian Saving and Credit Cooperatives. International Journal of Social Economics, 42(10), 870–887.
Mecha, N. S. (2017). Effect of Microfinance on Poverty Reductio:A Critical Scrutiny of Theoretical Literature. Global Journal of Commerce & Management Perspective, 6(3), 16–33.
Mirani, S. (2015). Determinants of Financial and Operational Sustainability of MFIs in Ethiopia. Addis Ababa
Mkansi, M., & Acheampong, E. A. (2012). Research Philosophy Debates and Classifications : Students ’ Dilemma, 10(2), 132–140.
Mohamed, A., & Ahmed, D. (2015). The Challenges Facing Microfinance Institutions in Poverty Eradication : A Case Study in Mogadishu, 2International Journal of Humanities Social Sciences and Education (IJHSSE) 56–62.
Mokoro, J. M. et al. (2010). The Transition From Micro-Financing Into Formal Banking Among the Micro Finance Institutions in Kenya. African Journal of Business & Management, 1, 1–15.
Moseti, D. (2015). Effects of Credit Risk Management on the Financial Performance of Microfinance Banks in Kenya.
Mustafa, F., & Khursheed, A. (2018). Impact of Global Financial Crunch on Financially Innovative Microfinance Institutions in South Asia. Financial Innovation.
Natamba, B., Pete, M., Zulaika, N., Akankunda, B., & Esther, A. (2013). Transaction Costs and Outreach of Microfinance Institutions in Uganda. Issues in Business Management and Economics, 1(2350–157X), 125–132.
Ndeeri, L. W. (2012). The Determinants of Transformation of Microfinance Institutions into Deposit Taking MFIs in Kenya. Nairobi.
Njeri, Mwaura & Daniel, W. (2014). Role of Credit Risk Management Practices in Sustainability of Micro Credit Schemes in Nakuru County. International Journal of Science and Research (IJSR), 3(5), 102–106.
Njiraini, J. (2015). Microfinance Good for the Poor. Africa Renewal.
Nyabicha, O. (2017). Effect of Credit Risk Management on Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange,Kenya. Kenyatta University.
Nyamsogoro, G. D. (2010). Financial Sustainability of Rural Microfinance Institutions ( MFIs ) in Tanzania.
Olingo, A. (2018, March). Kenya’s Microfinance Sector Loss Widens to $7.33m.
Omondi, D. (2019). Micro-lenders Sink Deeper into Losses.
Otieno, S. and, & Nyagol, M. (2016). Relationship Between Credit Risk Management and Financial Performance : Empirical Evidence from Microfinance Banks in Kenya. Research Journal of Finance and Accounting, 7(6), 115–142.
Rao, K. R. M., & Fitamo, T. L. (2014). Concepts and Measures of Outreach and Sustainability in Microfinance Institutions : A Comprehensive Literature Review. Research Journal of Finance and Accounting, 5(21), 41–49.
Resnik, D. B., Neal, T., Raymond, A., Kissling, G. E., Resnik, D. B., Neal, T., … Kissling, G. E. (2015). Research Misconduct Definitions Adopted by U.S. Research Institutions. Accountability in Research, 22(1), 14–21.
Shadrack, M. (2013). The Effect of Government Regulation on the Financial Sustainability of Microfinance Institutions in Kenya. Nairobi.
Sharma, S., Singh, P., Singh, K., & Chauhan, B. (2017). Group Lending Model - A Panacea to Reduce Transaction Cost ? Zagreb International Review of Economics & Business, 20(2), 49–63.
Shibru, S. (2017). Determinants of Financial Profitability of Microfinance Institutions in Ethiopia, 38, 1–6.
Tehulu, T. (2013). Determinants of Financial Sustainability of Microfinance Institutions in East Africa. European Journal of Business and Management, 5(17), 152–159. https://doi.org/10.5539/ijef.v6n9p107
The World Bank. (2017). Poverty Overview. The World Bank.
The World Factbook. (2019). Field Listing Population below poverty line.
UNNU. (2013). Microfinance in Africa:Overview and Suggestions for Action by Stakeholders.
Uzma, S. (2015). Performance Measurement of South Asian Microfinance Institutions.
Vatcheva, K. P., Lee, M., Mccormick, J. B., & Rahbar, M. H. (2016). Multicollinearity in Regression Analyses Conducted in Epidemiologic Studies, 6(2).
Wafula, D. (2017). Determinants of Financial Sustainability of Microfinance Institutions. Jomo Kenyatta university of Agriculture and Technology.
Wakaria, S. (2016). The effect of Credit Risk Management on the Financial performance of Microfinance Institutions in Kenya. Nairobi.
Wambua, M. (2017). Relationship between Expansionary strategies and Operational Efficiency of Deposit Taking Microfinancial Institutions in Kenya.
Werner, R. A. (2014). International Review of Financial Analysis Can banks individually create money out of nothing ? — The theories and the empirical evidence ☆. International Review of Financial Analysis, 36, 1–19.
Werner, R. A. (2016). International Review of Financial Analysis A lost century in economics : Three theories of banking and the conclusive evidence ☆. International Review of Financial Analysis, 46, 361–379.
Wijesiri, M., Yaron, J., & Meoli, M. (2015). Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter? Munich Personal RePEc Archive, (69821).
Williams, R., & Dame, N. (2015a). Logistic Regression , Part III : Hypothesis Testing , Comparisons to OLS, 1–12.
Williams, R., & Dame, N. (2015b). Multicollinearity, 1–14.
Woradithee, W. (2011). Financial Sustainability of Microfinance.
Worldometer. (2020). Kenya Population.
Yeshi, A. (2015). The Relationship between Outreach and Financial Sustainability: An Empirical Study on Ethiopian Microfinance Institutions.
Akhter, N. (2018). The Impact of Liquidity and Profitability on Operational Efficiency of Selected Commercial Banks in Bangladesh: A Panel Data Study. Double Blind Peer Reviewed International Research Journal, 18(7).
Akoglu, H. (2018). User’s Guide to Correlation Coefficients. Turkish Journal of Emergency Medicine, (18), 91–93.
Ali, K. (2013). The Relationship between Financial Sustainability and Outreach of Microfinance Institutions in Kenya. Nairobi.
Alibuhtto, M., & Peiris, T. (2015). Principal Component Regression for Solving Multicollinearity Problem.
Ameer, A. (2015). Outreach Performance and Financial Sustainability of Interest-free Microfinance Iinstitutions in Alappuzha, Kerala. Sai Om Journal of Commerce & Management, 2(8), 10–16.
AMFI. (2014). Sector Report on the Microfinance Sector in Kenya.
Arodi, J. O. (2013). The Relationship between Outreach and Financial Sustainability.
Ayele, G. T. (2015). Microfinance Institutions in Ethiopia, Kenya and Uganda: Loan Outreach to the Poor and the Quest for Financial Viability. African Development Review, 27(2), 117–129. https://doi.org/10.1111/1467-8268.12128
Balling, L. W., & Hvelplund, K. T. (2020). Design and Statistics in Quantitative Translation ( Process ) Research Design and Statistics in Quantitative Translation ( Process ) Research. Translation as a cognitive activity.
Bayai, I. (2017). Financing Structure and Financial Sustainability: Evidence from Selected Southern Africa Development Community Microfinance Institutions. University of Stellenbosch.
Bayai, I., & Ikhide, S. (2016). Life Cycle Theory and Financial Sustainability of Selected Sadc Microfinance Institutions. Proceeding of the Austrailia-Middle East Conference on Business and Social Sciences, 550–562.
Born, Benjamin; Breitung, J. (2010). (2010). Testing for Serial Correlation in Fixed-Effects Panel Data Models.
Catherine, W. (2016). Effect of Regulation on the Financial Performance of Microfinance Banks in Kenya:A Survey of Microfinance Banks in Nairobi. KCA.
CBK. (2011). Risk Management Survey for the Banking Sector.
CBK. (2012). Bank Supervision Annual Report.
CBK. (2013). Bank Supervision Annual Report.
CBK. (2014). Bank Supervision Annual Report.
CBK. (2015). Bank Supervision Annual Report.
CBK. (2016). Bank Supervision Annual Report.
CBK. (2017a). Annual Report and Financial Statements.
CBK. (2017b). Bank Supervision Annual Report.
CGAP. (2003). Microfinance Consensus Guidelines.
Chemining’wa, A. (2013). The Relationship between Mfi Outreach Services and Financial Sustainability in Kenya.
Chikaza, Z. (2015). Analysis of financial sustainability and outreach of Microfinance Institutions ( MFIs ) in Zimbabwe : case study of Harare.
Clementina, K., & Isu, G. (2015). Microfinance Banks Operations in Nigeria , Constraints and Suggested Solutions : An Evaluation. Global Journal of Contemporary Research in Accounting, Auditing and Business Ethics (GJCRA), (2), 312–331.
Creswell, J. (2014). Research Design: Qualitative, Quantitative and Mixed Methods Approaches (fourth). Thousand Oaks: SAGE Publications.
Czarnowske, D., & Stammann, A. (2020). Inference in Unbalanced Panel Data Models with Interactive Fixed Effects.
Dessalegn, S. (2018). Assessment of Outreach and Financial Sustainability of Microfinance Institutions A Case Study of Omomicro Finance Institution. St.Mary University.
Donou-Adonsou, F., & Sylwester, K. (2016). Financial Development and Poverty Reduction in Developing Countries: New Evidence from Banks and Microfinance Institutions.Review of Development Finance,6(1), 82–90.
Dube, H., & Matanda, E. (2015). The Downfall of the Micro Lending Businesses in Zimbabwe: Causes and Remedies. International Review of Research in Emerging Markets and the Global Economy (IRREM) An Online International Research Journal, (4), 2311–3200.
Elrahman, A., & Saaid, E. (2015). The Regulatory and Supervision Framework of Microfinance in Kenya. International Journal of Social Science Studies, 3(5), 123–130.
Eric, M. (2015). The Relationship between Financial Sustainability and Outreach of Microfinance Institutions in Kenya. Nairobi.
Fekadu, M., & Marthinus, C. (2017). Panel Data Analysis of the Proposed Monetary Union in the Southern African Development Community. Journal of Economics and Business.
Gashayie, A. (2015). Factors that Affect Financial Sustainability of Microfinance Institution : Literature Review, 7(7), 223–229.
George, O. (2017). Micro-finance and the Poverty Question : A Historical Perspective, 3(2), 93–113.
Greene and Hernsher. (2010). Models for Panel Data.
Hansen, B. (2018). Bootstrap Model Averaging Unit Root Inference.
Harelimana, J. B. (2017). The Determinants of Financial and Operational Sustainability of Microfinance Institutions: Case Study of Clecam-Ejoheza Ltd. Global Journal of Management and Business Research: C Finance, 17(4).
Henock, M. (2019). Financial Sustainability and Outreach Performance of Saving and Credit Cooperatives : The case of Eastern Ethiopia. Asia Pacific Management Review, 24(1), 1–9.
Hossain, K. &. (2016). Financial Sustainability of Microfinance Institutions ( MFIs ) of Bangladesh. Developing Country Studies, 6(6), 69–78.
Hussain, H., Shaheen L., & Shahid, M. A. (2018). Microfinance Ngos in Pakistan: Outreach and Sustainability. International Journal of Accounting and Financial, 8(2), 17–26.
IMF, Responsability. (2016). Microfinance Market Outlook.
Islam, M. (2017). Effects of Musharakah(Partnership) Contracts on the Financial Performance of Islamic Banks in Kenya. International Journal of Advanced Engineering and Management Research, 2(3), 400–411.
Jaffery, A., & Mamoon, D. (2017). Socio-economic Perspective of Microfinance as a poverty Reduction Tool. In Proceedings of 4th International Conference of Business Management.
Joshi, H. (2012). Multicollinearity Diagnostics in Statistical Modeling and Remedies to deal with it using SAS. Pharmaceutical Users Software Exchange.
Kagoyire, A., & Shukla, J. (2016). Effects of Credit Management on Performance of Commercial Banks in Rwanda (A Case study of Equity Bank Rwanda Ltd). International Journal of Business and Management Review, 4(4), 1–12.
Karanja, A. M. (2014). Relationship Between Outreach and Financial Performance of Deposit Taking Micro Finance Institutions in Kenya.
Kaur, P. (2014). Outreach and Sustainability of Microfinance Institutions in India in Pre and Post Andhra Pradesh Microfinance Crisis in Context of South Asia. Global Journal of Finance and Management, 6(6), 569–574.
Kibui, N. (2014). Effects of Credit Risk Management on Financial Performance of SACCOS : A Case Study of Harambee SACCO. InternationalAcademic Journal of Information Sciences andProjectManagement, 1(3), 157–172.
Kinde, B. A. (2012). Financial Sustainability of Microfinance Institutions (MFIs) in Ethiopia. European Journal of Business and Management, 4(15), 2222–2839.
King, M. (2015). Kenya’s Financial Transformation in the 21st Century.
Korir, S. (2014). The Effect of Credit Risk Management on Financial Performance of Deposit Taking Microfinance Institutions in Kenya. Nairobi.
Kothari, C. (2004). Research methodology methods and Techniques (second rev). New Age International limited.
Kubai, E. (2019). Reliability and Validity of Research Instruments.
Mackie, P. et al. (2015). Geography and Planning Microfinance and Poverty Alleviation in Ethiopia. Addis Ababa.
Mago, S. (2013). Microfinance In Zimbabwe : A Historical Overview. Mediterranean Journal of Social Sciences, 4(14), 599–608.
Marr, A. &Churchill, S. (2017). Sustainability and Outreach : A Comparative Study of MFIs in South Asia and Latin America & the Caribbean. Bulletin of Economic Research, 69(October).
Marwa & Aziakpono. (2015). Financial Sustainability of Tanzanian Saving and Credit Cooperatives. International Journal of Social Economics, 42(10), 870–887.
Mecha, N. S. (2017). Effect of Microfinance on Poverty Reductio:A Critical Scrutiny of Theoretical Literature. Global Journal of Commerce & Management Perspective, 6(3), 16–33.
Mirani, S. (2015). Determinants of Financial and Operational Sustainability of MFIs in Ethiopia. Addis Ababa
Mkansi, M., & Acheampong, E. A. (2012). Research Philosophy Debates and Classifications : Students ’ Dilemma, 10(2), 132–140.
Mohamed, A., & Ahmed, D. (2015). The Challenges Facing Microfinance Institutions in Poverty Eradication : A Case Study in Mogadishu, 2International Journal of Humanities Social Sciences and Education (IJHSSE) 56–62.
Mokoro, J. M. et al. (2010). The Transition From Micro-Financing Into Formal Banking Among the Micro Finance Institutions in Kenya. African Journal of Business & Management, 1, 1–15.
Moseti, D. (2015). Effects of Credit Risk Management on the Financial Performance of Microfinance Banks in Kenya.
Mustafa, F., & Khursheed, A. (2018). Impact of Global Financial Crunch on Financially Innovative Microfinance Institutions in South Asia. Financial Innovation.
Natamba, B., Pete, M., Zulaika, N., Akankunda, B., & Esther, A. (2013). Transaction Costs and Outreach of Microfinance Institutions in Uganda. Issues in Business Management and Economics, 1(2350–157X), 125–132.
Ndeeri, L. W. (2012). The Determinants of Transformation of Microfinance Institutions into Deposit Taking MFIs in Kenya. Nairobi.
Njeri, Mwaura & Daniel, W. (2014). Role of Credit Risk Management Practices in Sustainability of Micro Credit Schemes in Nakuru County. International Journal of Science and Research (IJSR), 3(5), 102–106.
Njiraini, J. (2015). Microfinance Good for the Poor. Africa Renewal.
Nyabicha, O. (2017). Effect of Credit Risk Management on Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange,Kenya. Kenyatta University.
Nyamsogoro, G. D. (2010). Financial Sustainability of Rural Microfinance Institutions ( MFIs ) in Tanzania.
Olingo, A. (2018, March). Kenya’s Microfinance Sector Loss Widens to $7.33m.
Omondi, D. (2019). Micro-lenders Sink Deeper into Losses.
Otieno, S. and, & Nyagol, M. (2016). Relationship Between Credit Risk Management and Financial Performance : Empirical Evidence from Microfinance Banks in Kenya. Research Journal of Finance and Accounting, 7(6), 115–142.
Rao, K. R. M., & Fitamo, T. L. (2014). Concepts and Measures of Outreach and Sustainability in Microfinance Institutions : A Comprehensive Literature Review. Research Journal of Finance and Accounting, 5(21), 41–49.
Resnik, D. B., Neal, T., Raymond, A., Kissling, G. E., Resnik, D. B., Neal, T., … Kissling, G. E. (2015). Research Misconduct Definitions Adopted by U.S. Research Institutions. Accountability in Research, 22(1), 14–21.
Shadrack, M. (2013). The Effect of Government Regulation on the Financial Sustainability of Microfinance Institutions in Kenya. Nairobi.
Sharma, S., Singh, P., Singh, K., & Chauhan, B. (2017). Group Lending Model - A Panacea to Reduce Transaction Cost ? Zagreb International Review of Economics & Business, 20(2), 49–63.
Shibru, S. (2017). Determinants of Financial Profitability of Microfinance Institutions in Ethiopia, 38, 1–6.
Tehulu, T. (2013). Determinants of Financial Sustainability of Microfinance Institutions in East Africa. European Journal of Business and Management, 5(17), 152–159. https://doi.org/10.5539/ijef.v6n9p107
The World Bank. (2017). Poverty Overview. The World Bank.
The World Factbook. (2019). Field Listing Population below poverty line.
UNNU. (2013). Microfinance in Africa:Overview and Suggestions for Action by Stakeholders.
Uzma, S. (2015). Performance Measurement of South Asian Microfinance Institutions.
Vatcheva, K. P., Lee, M., Mccormick, J. B., & Rahbar, M. H. (2016). Multicollinearity in Regression Analyses Conducted in Epidemiologic Studies, 6(2).
Wafula, D. (2017). Determinants of Financial Sustainability of Microfinance Institutions. Jomo Kenyatta university of Agriculture and Technology.
Wakaria, S. (2016). The effect of Credit Risk Management on the Financial performance of Microfinance Institutions in Kenya. Nairobi.
Wambua, M. (2017). Relationship between Expansionary strategies and Operational Efficiency of Deposit Taking Microfinancial Institutions in Kenya.
Werner, R. A. (2014). International Review of Financial Analysis Can banks individually create money out of nothing ? — The theories and the empirical evidence ☆. International Review of Financial Analysis, 36, 1–19.
Werner, R. A. (2016). International Review of Financial Analysis A lost century in economics : Three theories of banking and the conclusive evidence ☆. International Review of Financial Analysis, 46, 361–379.
Wijesiri, M., Yaron, J., & Meoli, M. (2015). Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter? Munich Personal RePEc Archive, (69821).
Williams, R., & Dame, N. (2015a). Logistic Regression , Part III : Hypothesis Testing , Comparisons to OLS, 1–12.
Williams, R., & Dame, N. (2015b). Multicollinearity, 1–14.
Woradithee, W. (2011). Financial Sustainability of Microfinance.
Worldometer. (2020). Kenya Population.
Yeshi, A. (2015). The Relationship between Outreach and Financial Sustainability: An Empirical Study on Ethiopian Microfinance Institutions.
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Published
2020-12-10
How to Cite
Mutua, R. N., Jagongo, A., & Simiyu, E. (2020). FINANCIAL OUTREACH AND FINANCIAL SUSTAINABILITY OF LICENSED DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN NAIROBI CITY COUNTY, KENYA. International Journal of Finance and Accounting, 5(2), 69 – 94. https://doi.org/10.47604/ijfa.1179
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