Financial Performance in the Selected Microfinance Institutions in Uganda

Abstract

This study was undertaken to examine the degree of financial performance in the
selected Microfinance institutions central region, Uganda. The ex- post facto or
retrospective, prospective designs and descriptive survey design, and specifically
descriptive comparative and descriptive correlation strategies were employed. A
minimum sample of 266 was used in data collection and analysis. Data was
analysed using means and t-test. The findings revealed that the degree of financial
performance in the microfinance institutions in central region Uganda is high with
an overall average mean of 3.09 this implies that that most financial institutions in
Uganda are financially sound. The contingency theory by Joan Wood wards
(1958) as cited and explained by Simons? (1995) levers of management system
control model was authenticated and validated. The conclusion was drawn that the
degree of financial performance in the microfinance institutions in central region
Uganda was generally high and it was recommended that Microfinance
institutions should enhance financial reporting framework to improve on the
liquidity position, improve assets value, market share, financial sustainability as
well as portfolio quality

Key Words: Financial ,Performance, Microfinance , Institutions