ROLE OF LEGAL COMPLIANCE IN TRANSFORMATION OF MICROFINANCE INSTITUTIONS INTO MICROFINANCE BANKS IN KENYA

  • Dr. George Koome Rukaria Maasai Mara University
DOI: https://doi.org/10.53555/bm.v3i4.1297
Keywords: Microfinance, Microfinance Institution, Transformation,, Licensing, Legal, compliance, Microfinance Bank

Abstract

The purpose of this study was to establish the role of legal compliance in the transformation of
microfinance institutions into microfinance banks in Kenya. The target population was 48
members of the Association of Microfinance Institutions as at 1st January 2013. Using purposive
sampling, the study selected 25 institutions from which 100 respondents were selected using
simple random sampling. A questionnaire was used to collect data. This study established that
legal compliance had a significant effect on the transformation of microfinance institutions into
microfinance banks in Kenya. Thus, it concluded that legal compliance played a significant role
in the transformation of microfinance institutions into microfinance banks in Kenya. The study
recommends that for transforming Microfinance Institutions to comply with the legal
requirements with ease, they should first fully understand the licensing process. The study also
recommends further research to determine the impact of regulating microfinance in Kenya.

Downloads

Download data is not yet available.

Author Biography

Dr. George Koome Rukaria, Maasai Mara University

PhD

Lecturer, School of Business and economics

Published
2017-04-30
How to Cite
Koome Rukaria, D. G. (2017). ROLE OF LEGAL COMPLIANCE IN TRANSFORMATION OF MICROFINANCE INSTITUTIONS INTO MICROFINANCE BANKS IN KENYA. IJRDO - Journal of Business Management, 3(4), 70-94. https://doi.org/10.53555/bm.v3i4.1297
Issue
Vol. 3 No. 4 (2017): IJRDO - Journal of Business Management
Section
Articles

By submitting a manuscript to IJRDO – Journal of Business Management, the author(s) confirm that the work is original and does not infringe upon any existing copyrights or third-party rights.

Authors retain responsibility for the content of their work. In cases of proven ethical misconduct such as plagiarism or duplicate publication, the journal reserves the right to take appropriate action, which may include correction or retraction, in accordance with publication ethics.