Impact Of Organizational Culture In The Effectiveness Of The Transformation Process Of Microfinance Organizations In Kenya Into Deposit Taking Institutions

Purpose: The purpose of this study was to assess the impact of organizational culture in the effectiveness of the transformation process of microfinance organizations in Kenya into deposit taking institutions.Methodology: This study adopted descriptive research design. For purposes of collecting primary data, the use of a questionnaire developed by the researcher was used. Data was then analyzed using Excel and SPSS and presented in tables, graphs and charts. A total of 120 questionnaires were distributed to the above five organizations and 42 of them were returned. This represents a 35% response rate.Results: Based on the findings, the study concluded that the dominant culture of MFIs that have transformed to DTMs is that of Control. The results further led to the conclusion that this type of culture is appropriate for MFIs since MFIs operate in heavily regulated and structured environment where standardized procedures and efficient processes enhance the stability of such MFIs. The study also showed that the most dominant organization leadership culture is that of Control. The leaders exemplify coordinating, organizing or smooth running efficiency. Results further revealed that leadership culture that is generally considered to exemplify entrepreneurship, innovation or risk taking is associated with the highest transformation success. Unique contribution to theory, practice and policy: The study recommends that the leadership of organizations should have an understanding of the attributes of the dominant culture of their organizations, the level of opposing tension or balance between values, or the congruence between the organization and its leadership or initiatives.