Influence of Organizational Policy on the Performance of Selected Microfinance Institutions in Kitui County

Abstract

Microfinance Institutions (MFIs) are unable to meet the current market demand requiring firms to identify workable methods that satisfy the organization’s needs. The present study sought to determine the influence of Organizational Policy on The Performance of Selected Microfinance Institutions in Kitui County. The study applied a cross-sectional research design, population of the study included 175 middle-level managers in the departments of finance, human resources, procurement, sales, and marketing as well as the ICT department among 7 MFIs in Kitui county. The study applied a stratified random sampling technique to sample 122 respondents. Data was collected using questionnaires that were physically administered. The study analyzed data using descriptive and inferential analysis. The study revealed a β of 0.641, t= 7.507, which was associated with a p-value of 0.001. The study concluded that organizational policy had a significant and positive influence on the performance of microfinance institutions in Kitui County. Microfinance institutions should regularly review policies on resource allocations, codes of conduct, power relations, and communication to ensure that they are relevant at all times and reflect the requirements of the strategic plans.