EFFECT OF LIQUIDITY MANAGEMENT ON FINANCIAL PERFORMANCE OF NON-DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN MOMBASA, KENYA

The purpose of the study was to investigate effect liquidity management on financial performance non-deposit taking MFIs in Mombasa. specific objectives were establish asset quality, capital adequacy, maturity gap and cash .. adopted cross-sectional descriptive survey research design. T he target population seven operating Mombasa County. Unit observation 66 top managers finance selected MFIs. utilized purposive sampling design a sample 58 respondents by use Fisher’s statistical formula. primary data collected structured closed-ended questionnaires. Pilot test conducted collection tools validity reliability. On analysis, statistics inferential employed analyze data. Statistical Package for Social Science (SPSS) analysis tool. Analyzed presented frequency tables. results revealed that loan portfolio is major revenue source established Microfinance institutions have invested real assets improve quality. concluded microfinance draws its funding from equity external borrowing. Further, it had adequate total reserves cover needs base would be affected loss income-generating activities. recommended should ensure maintained prevent potential issuance delays. Key Words: Asset Quality, Capital Adequacy, Maturity Gap, Cash Management CITATION: Shahale, D.M., & Ibrahim, A. (2022). Effect Mombasa, Kenya. Strategic Journal Business Change Management, 9 (2), 720 – 734.