| dc.description.abstract | Performance is a critical measure of an organization's effectiveness, efficiency, and ability to achieve its goals, directly impacting its sustainability and growth. The performance of microfinance institutions (MFIs) in Kenya, remains a critical concern given their vital role in promoting financial inclusion and economic growth. Despite various initiatives and strategic efforts, many MFIs continue to exhibit suboptimal performance, highlighting the need to analyze specific performance metrics such as loan repayment rates, portfolio quality, operational efficiency, and client outreach. In this case the current study sought to establish the influence of strategic planning on performance of microfinance institutions (MFIs) in Kitui County. This study delved specifically into four objectives that focused on influence of organization policy, technology, crisis management, and financial management and the link they have with performance of MFIs in Kitui County. The study was guided by the following key theories; Stewardship theory, Technology diffusion theory, the theory of Reasoned Action and the Agency theory. To conduct the study, the research design adopted was a descriptive design with a target population of 175 mangers serving in seven MFIs in Kitui County. To obtain an appropriate sample size of 122 respondents for the study a stratified sampling technique was used. Questionnaire were administered electronically and also in person in collection of primary data whereas secondary data was collected from the financial statements and records of the organizations. Analysis on the data gathered was done through SPSS where descriptive analysis and inferential analysis were used. Additionally, responses from qualitative data were analyzed thematically through content analysis. Findings revealed a beta coefficient of 0.309 and a p-value of 0.007 between organizational policy and performance, a beta coefficient of 0.552 and a p-value of 0.001 between financial management and performance, additionally results showed a beta coefficient of 0.048 and p-value of 0.023 between technology and performance. Lastly results showed a beta coefficient of 3.312 and a p-value of 0.003 between crisis management and performance of MFIs. Conclusions for the study were that organizational policy, technology, financial management and crisis management positively and significantly influenced performance of MFIs in Kitui county. The study recommended the alignment of the organization's policy with the strategic plan through clear policies on ethical practices, leadership practices, and decision-making structure. The study also recommends the audit of the existing technology infrastructure among the MFIs to align them with the strategic plans so that they can enhance decision-making, provide information security, and the automation of practices to enhance organization performance. The MFIs mangers should come up with comprehensive practices on crisis management that can pre-empt, respond to as well and accommodate crises to mitigate the effects of the crisis as well as take advantage of the opportunity presented by the crisis. Finally, MFIs managers can align their financial management plan with the organization's strategic plan through budgeting, the use of cash flows to support strategic planning, and ultimately the performance of the MFIs. | en_US |
