The Moderating Effect of Regulatory Framework on the Relationship Between Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions in Kenya

Simple item page
dc.contributor.authorPhanice Bushuru Ambutsi
dc.contributor.authorMuturi Wachira
dc.contributor.authorProf. Laban Peter Ayiro
dc.date.accessioned2026-01-24T08:17:05Z
dc.date.available2026-01-24T08:17:05Z
dc.date.issued2025-10
dc.description.abstractMicrofinance 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.
dc.identifier.citationAmbutsi, P., B., Wachira., M. & Ayiro, L., P. (2025). The Moderating Effect of Regulatory Framework on the Relationship Between Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions in Kenya. Journal of Finance and Accounting, 9(4) pp.129-141. https://doi.org/10.53819/81018102t3150
dc.identifier.issnISSN:2616-4965
dc.identifier.urihttps://repository.ru.ac.ke/handle/123456789/2005
dc.language.isoen
dc.publisherStratfordPeerReviewedJournalsandBookPublishing
dc.relation.ispartofseriesVolume 9||Issue 4 ||Page 129-141
dc.subjectModerating Effect
dc.subjectRegulatory Framework
dc.subjectCorporate Governance
dc.subjectTriple Bottom Line
dc.subjectPerformance
dc.subjectMicrofinance Institutions
dc.titleThe Moderating Effect of Regulatory Framework on the Relationship Between Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions in Kenya
dc.typeArticle

Files

Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Published+Article-9th+October+2025.pdf
Size:
262.21 KB
Format:
Adobe Portable Document Format
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed to upon submission
Description:
Download

Collections

School of Business