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This research aims to analyze the relationship between microfinance stability and business growth in Kenya's informal economy.

February 26, 2026Open Access

Microfinance Instability and Business Growth Dynamics in Kenyan Informal Economies: A Theoretical Framework

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This research aims to analyze the relationship between microfinance stability and business growth in Kenya's informal economy.
Theoretical analysis of existing literature on microfinance and business growth.
Systematic review of empirical studies related to microfinance stability in developing countries.
Development of a theoretical framework based on gathered insights.
Microfinance institutions face instability due to regulatory changes and competition.
Regulatory consistency is essential for improving microfinance effectiveness.
Longer-term financial products with fixed interest rates could better support small businesses.

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Theoretical analysis reveals the impact of microfinance stability on small business growth in informal economies, suggesting regulatory improvements.

Cherono et al. (2002) studied this question.

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Theoretical analysis reveals the impact of microfinance stability on small business growth in informal economies, suggesting regulatory improvements.