THE INFLUENCE OF ORGANIZATIONAL CULTURE ON THE TRANSFORMATION OF MICRO FINANCE INSTITUTIONS (MFIS) INTO DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN, NAKURU COUNTY, KENYA

Abstract

The transformation within MFI involves changes in organizational structure, objectives, geographical scope, customer base, products and services, and legal status. Transformation is characterized by tighter regulatory oversight from national banking authorities. The study noted that the transformation process starts at the point in which the institution ceases operating as an NGO and legally starts operating as a formal financial institution. This study adopted a descriptive research design. The target population of this study is the staff working in Microfinance institutions in Nakuru town. A sample size of 83 respondents was utilized. The organizational culture negatively influences the success of transformation of MFIs into DTMs on its own. In this context, the study concluded that customer service had greater influence on the success of transformation of MFIs to DTMs than other metrics due to its high mean and low standard deviation. The study recommended that more emphasis be placed on the decisions communication levels to be successful. This is because these aspects generally had greater influence in respect to their means.