Abstract:
This study aimed to investigate the effects of corporate social responsibility (CSR) on the
financial performance of microfinance institutions (MFIs) in Makueni County. The study was
motivated by the increasing demand for openness and increased expectations that
organizations measure, report, and gradually improve their CSR activities. A descriptive
research design was used, and data was collected through a questionnaire, interviews, and case
studies. The study used simple random sampling, stratified sampling, cluster sampling, and
purposive sampling techniques to select a sample of 34 respondents from the target population
of microfinance institutions in Makueni County. Descriptive statistics, correlation analysis,
regression analysis, and thematic analysis were used to analyze the data. The findings of this
study will be useful to MFIs in Makueni County, the Central Bank of Kenya, and other
governing bodies and will help in theory building. The study's implications for policy and
practice will be to provide an enabling environment and tax holidays to microfinance
institutions that practice CSR. The study's research gap was on determining the impact of CSR
on a firm's financial performance.