Browsing by Author "Phanice Bushuru Ambutsi"

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    Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions In Kenya
    (African Journal of Emerging Issues (AJOEI), 2025-10-15) Phanice Bushuru Ambutsi; Prof. Muturi Wachira; Prof. Laban Peter Ayiro
    Statement of the Problem:Corporate governance plays a critical role in the sustainability of Microfinance Institutions (MFIs), which contribute to poverty reduction and financial inclusion. However, recent failures and declining performance of MFIs in Kenya have raised concerns about their governance structures. Between 2022 and 2024, only four of fourteen licensed MFIs reported profits, with the sector recording a combined loss of Ksh. 3.5 billion in 2024. Purpose of the Study:This study examined the effect of board diversity and board committees on the financial, social, and environmental performance of Microfinance Institutions in Kenya.Methodology:The study adopted an explanatory research design with a pragmatist philosophical approach. The target population comprised all 14 licensed deposit-taking MFIs registered with the Central Bank of Kenya. Primary data were collected using structured questionnaires administered to senior management, while secondary data were obtained from audited financial reports and regulatory documents. Data analysis employed descriptive statistics, correlation analysis, and hierarchical multiple regression.Results:The findings revealed that both board diversity and board committees have moderate,positive, and statistically significant effects on TBL performance. Board committees showed a correlation coefficient of r = 0.612 (p < 0.05), while board diversity showed r = 0.493 (p < 0.05). Regression analysis indicated that a unit increase in board diversity leads to 0.298 increase in TBL performance, explaining 58.8% of variance, while board committees contribute 0.338 increase, accounting for 60.4% of variance.Conclusion:Corporate governance mechanisms, particularly board diversity and committee structures, significantly enhance MFIs' capacity to achieve integrated financial sustainability, social outreach, and environmental responsibility, thereby reducing agency costs and aligning institutional actions with stakeholder interests.Recommendations:MFI boards should strengthen diversity and establish specialized committees. Policymakers should develop Kenya-specific governance frameworks for MFIs and integrate TBL performance indicators into regulatory supervision to promote sustainable performance across financial, social, and environmental dimensions.
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    The Moderating Effect of Regulatory Framework on the Relationship Between Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions in Kenya
    (StratfordPeerReviewedJournalsandBookPublishing, 2025-10) Phanice Bushuru Ambutsi; Muturi Wachira; Prof. Laban Peter Ayiro
    Microfinance institutions in Kenya continue to face persistent financial instability despite their critical role in promoting financial inclusion andsocio-economic growth. This study examined how the regulatory framework moderates the relationship between corporate governance and Triple Bottom Line (TBL) performance of microfinance institutions (MFIs). The purpose was to determine whether regulatory structures strengthen or weaken the effect of governance practices on financial, social, and environmental outcomes. Primary data were obtained through structured questionnaires administered to 84 respondents drawn from 14 purposively selected microfinance banks out of 47 institutions registered under the Association of Microfinance Institutions of Kenya as of December 2024. Stratified random sampling was applied, and data were analyzed using SPSS through descriptive statistics, Pearson correlation, and hierarchical multiple regression. Results revealed that governance indicatorsboard size, activity, diversity, independence, and audit qualitypositively influenced TBL performance, while inclusion of the regulatory framework increased explanatory power from 53.2% to 65.1%. Significant interaction effects between regulation and governance variables, particularly board size, independence, and audit quality, confirmed the moderating role of the regulatory framework. The study concludes that effective regulation amplifies good governance, thereby enhancing financial stability, social outreach, and environmental responsibility. However, excessive regulatory pressure can hinder innovation and impose compliance burdens that weaken performance. The study recommends that policymakers and regulators adopt a balanced approach that integrates governance reforms with adaptive regulatory oversight to promote resilient, socially inclusive, and environmentally sustainable microfinance institutions aligned with Kenya’s Vision 2030 and the Sustainable Development Goals.