STRATEGIC LEADERSHIP PRACTICES AND ORGANIZATIONAL PERFORMANCE OF LICENSED CREDIT MICROFINANCE INSTITUTIONS IN NAIROBI COUNTY, KENYA

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dc.contributor.authorROSEMARY WAWERU
dc.date.accessioned2026-03-31T16:17:38Z
dc.date.available2026-03-31T16:17:38Z
dc.date.issued2025-09
dc.descriptionThesis
dc.description.abstractNairobi County's microfinance institutions (MFIs) have been experiencing performance related challenges, such as declining profitability, an increase in loan defaults, and inefficient operations. The efficiency of strategic leadership techniques in improving their performance is still poorly understood, despite their critical role in financial inclusion and economic development. Despite their crucial financial inclusion and economic development mandate, the effectiveness of strategic leadership practices in enhancing their performance remains underexplored. This research intended founding the impact of strategic leadership practices on organizational performance of credit MFIs within the Nairobi County of Kenya. Evaluation of the effects of strategic leadership practices on the performance of credit MFIs in Nairobi County, Kenya was the major objective of the study. Specifically, the research targeted to determine strategic direction effect, the role of strategic control in influencing organizational performance, and determination of the effect of operational efficacy and human capital development. The theoretical framework was based upon: the contingency theory, the transformational leadership theory, the RBV theory and the strategic leadership theory. Relationship between the variables was described using mixed-methods research design and the degree to which the variables are related was identified. The 51 licensed credit MFIs in Nairobi County, Kenya were the study population. Owing to the relatively small population, a census survey approach was employed, encompassing all credit MFIs in Nairobi County in Kenya. The head of strategy or their equivalent within these institutions was the unit of observation. A census of all 51 head of strategy in the credit MFIs in Nairobi County in Kenya was studied. Primary data was collected via a structured questionnaire intended to capture information on strategic leadership practices and organizational performance. SPSS version 24 was adopted and involved descriptive statistics, correlation analysis to examine associations amidst variables, and regression analysis to establish the independent variables predictive power on organizational performance. Cronbach's alpha was utilized to measure the instrument internal consistency in order to assess reliability in this research. The regression analysis discovered that all four strategic leadership practices had a positive significant influence on organizational performance. The research resolved strategic leadership practices significantly enhance the performance of credit MFIs by strengthening goal alignment, optimizing internal operations, building staff capacity, and reinforcing performance monitoring mechanisms. To achieve long-term performance improvements, the research suggested that MFIs increase their investments in leadership development, institutionalize feedback systems, review strategic plans on a regular basis, and maintain operational coherence. For stakeholders, managers, and policymakers dedicated to enhancing the competitiveness and sustainability of Kenya's microfinance industry, these insights provide helpful guidance.
dc.identifier.urihttps://repository.cuea.edu/handle/123456789/641
dc.language.isoen_US
dc.publisherTHE CATHOLIC UNIVERSITY OF EASTERN AFRICA
dc.subjectStrategic leadership practices
dc.subjectorganizational performance
dc.subjectcredit microfinance institutions
dc.subjectfinancial services sector
dc.subjectleadership effectiveness
dc.subjectcorporate governance
dc.subjectNairobi County
dc.subjectKenya
dc.titleSTRATEGIC LEADERSHIP PRACTICES AND ORGANIZATIONAL PERFORMANCE OF LICENSED CREDIT MICROFINANCE INSTITUTIONS IN NAIROBI COUNTY, KENYA
dc.typeThesis

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