Undoing Performance in Micro Finance Institutions: Reflections on Regulatory Framework in Kenya

The performance of Micro Finance Institutions (MFIs) has been affected negatively by the current hypercompetitive economic environment which beencharacterised as unfair competition. Huge losses have reported among MFIs in Kenya, this forced to innovate differently; product, financial, organisational or market innovation. This not yielded better results. study sought establish moderating effect regulatory framework on relationship between strategic innovation orientation and using case Kenya. indicators for were; prudential guidelines, non-prudential government laws. A descriptive explanatory research design was adopted with a target population 13 from sample 352 respondents obtained proportionate stratified simple random sampling technique. Both financial non-financial measures were collected analysed mutiple regression. found performance. findings established that had MFIs. informs importance regulation control bodies government.