Influence of Product Differentiation on the Growth of Micro Finance Institutions in Malindi Sub-County, Kenya

This study sought to examine the influence of product differentiation on the growth of microfinance institutions in Malindi sub-county, Kenya. The study was guided by Diffusion of Innovation Theory. A descriptive research design was employed. The target population of the study included 71 sales and marketing personnel working in MFIs in Malindi sub-county. A census approach was adopted given the small size of the population. Questionnaires were used to collect data. The questionnaires were checked for validity and reliability. Descriptive and inferential statistics were used in data analysis, with the aid of Statistical Package for Social Sciences. Findings were presented with tables. The study found out that market development had significant relationship with the growth of micro finance institutions in Malindi sub-county, Kenya. Findings from the regressions indicated that market development significantly influenced the growth of micro finance institutions in Malindi sub-county, Kenya. Hence, the study concluded that market development had a vital role in determining the growth of micro finance institutions in Malindi sub-county, Kenya. The study recommended that the MFIs should focus on implementing market development strategies to enhance their growth. Hence, enhancing the market development will ensure continued growth of the institutions.