Title: Determinants of financial sustainability in the micro finance sector: evidence from Kenya, Tanzania and Uganda

Authors: Nelson Maina Waweru; John M. Parkinson

Addresses: School of Administrative Studies, York University, 4700 Keele Street, Toronto, ON, M3J 1P3, Canada ' School of Administrative Studies, York University, 4700 Keele Street, Toronto, ON, M3J 1P3, Canada

Abstract: This study seeks to determine the factors influencing financial sustainability of micro finance institutions (MFIs) in Kenya, Tanzania and Uganda. Data was obtained from 55 MFIs operating in there as at 31st December 2012. Using the OLS multiple regression model, we found that financial sustainability was mainly influenced by financial costs, outreach and the proportion of women borrowers. The results of this study are important to the MFIs as they continue to pursue their objective of poverty alleviation while maintaining financial sustainability.

Keywords: microfinance institutions; financial sustainability; Kenya; Tanzania; Uganda; financial costs; outreach; women; female borrowers; poverty alleviation.

DOI: 10.1504/IJAF.2015.075280

International Journal of Accounting and Finance, 2015 Vol.5 No.3, pp.189 - 204

Received: 26 Nov 2014
Accepted: 23 Jul 2015
Published online: 09 Mar 2016 *

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