Phanice Bushuru AmbutsiProf. Muturi WachiraProf. Laban Peter Ayiro2026-01-242026-01-242025-10-15Corporate Governance and Triple Bottom Line Performance of Microfinance Institutions In Kenya. (2025). African Journal of Emerging Issues, 7(23), 109-126. https://ajoeijournal.org/sys/index.php/ajoei/article/view/986ISSN 2663-9335https://repository.ru.ac.ke/handle/123456789/2006Statement 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.enCorporate GovernanceTriple Bottom LinePerformanceMicrofinance InstitutionsKenyaArticle