Robert Gitau Muigai, Jane Gathigia Muriithi


This study sought to ascertain the influence of microfinance services on the financial performance of MSMEs in Kirinyaga County. Specifically, the study sought to determine how microcredit services, micro-saving services and business consultancy services offered by Microfinance institutions influenced the financial performance of MSMEs within the county as operationalized by growth in their sales turnover. The study was anchored on the theories of Information Asymmetry and Financial Intermediation. The study’s target population comprised the MSMEs operating within Kirinyaga County and adopted the descriptive research design. The studied MSMEs were purposively selected from the townships of Sagana, Kerugoya, Kutus, Kagio, and Kagumo. Primary data was collected using structured questionnaires and analysis of the collected data was performed using descriptive and inferential statistical techniques. The results were presented using tables and charts. The study found that all the services offered by microfinance institutions had a positive and significant influence on the financial performance of MSMEs. Effectively, the study recommended that the owner-managers of the MSMEs should have more strategic engagement with the Microfinance institutions in tapping the services extended by them. Further, sustained efforts should be made by policy formulators to promote and strengthen microfinancing in pursuit of Vision 2030.


JEL: L10; L20; M10; G20


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microfinance services, financial performance, micro, small and medium enterprises, micro-credit, micro-savings, business consultancy

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