Impact of Turnaround Strategies on the Growth of Microfinance Institutions in Kenya

Abstract

The study sought to investigate the impact of turnaround strategies on the growth of microfinance institutions in Kenya. The study identified turnaround strategies adopted by microfinance institutions and the impact of these strategies on growth. The study started by looking at the turnaround strategies which were adopted by Microfinance institutions. Several strategies adopted include; Strengthening of governance, new leadership and management change, Secondly, there was repositioning which was actually achieved through the redefining of products to ensure effective competition in the industry. Thirdly, change in management style. Reorganization as a turnaround strategy was evident as organizations ceased to exist. The acquisition strategy brought in an element of diversification where some organizations were able to do business in new areas and adopt new products. Also these strategies impacted growth of microfinance institutions included; new leadership and management, establishment of support units, alignment of operational policies and reduction of operational. A descriptive survey was used in studying the Micro finance institutions where primary data was used to gather information of impact of turnaround strategies on the growth of microfinance institutions in Kenya. Primary data was gathered via drop and pick where designed questionnaires were used to engage the microfinance institutions. The research found out that any turnaround process to be successful there is always need for an organization to develop or adopt appropriate and relevant interventions that will address the issues conclusively. Whereas not all turnaround processes may bring the desired results in terms of meeting timelines and other deliverables, successful implementation will result in to not only restoration of an organizations business but will also set base for the organization’s future growth and sustainability. In summary and conclusion turnaround strategies may bring the desired results in terms of meeting timelines and other deliverables, successful implementation will result in to not only restoration of an organizations business but will also set base for the organization’s future growth and sustainability.