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Downscaling of Microfinance in Africa: The Sustainability of Downscaling of Microfinance in the Great Lakes Region: Empirical Evidence from Kenya
 
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Downscaling of Microfinance in Africa: The Sustainability of Downscaling of Microfinance in the Great Lakes Region: Empirical Evidence from Kenya [Paperback]

Emmanuel Mutisya

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Downscaling of Microfinance: This paper assesses the effect of downscaling of microfinance in the Great Lakes Region taking Kenya as a case study for the period 1997-2009. The paper uses the non-parametric frontier approach; data envelopment analysis, to measure the performance and efficiency of Kenyan banks. Using data from Bankscope Global Database, Central Bank of Kenya, CGAP and Microfinance Exchange, it is manifested in a cross sectional setting that downscaling of microfinance has a positive and significant effect on financial institutions' performance, efficiency and economic growth. As a summary, I state that downscaled banks are stronger now than they were back ten years ago. A conclusion is that, Kenya, during the period studied has gained much in terms of financial institutions' growth, their performance and efficiency which is a good gesture to the country's developing economy. Downscaling of microfinance in the Great Lakes Region has played a great role in improving performance and efficiency of banking institutions in the region and hence the much desired microfinance sustainability.

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