Purpose: The study aimed to examine thedeterminants of financial performance of deposit-taking microfinance institutions and co-operative societies that have front office service activities financial performance of portfolios of investment firms in Kenya.Methodology:The research design was descriptive survey. The study used a sample of 11 Sacco FOSAs and 6 DTMs. Secondary data spanning three years (2009 to 2011) was used. A regression model was used to establish determinants of financial performance of deposit-taking microfinance institutions and co-operative societies that have front office service activities financial performance of portfolios of investment firms in Kenya.Results:This study concludes that there is a positive relationship between profit ratio and interest income ratio. Therefore, an increase in interest income ratio by leads to an increase in profit margin. This study concludes that there is a positive relationship between profit ratio and non-interest income ratio. An increase in noninterest income ratio leads to an increase in profit margin. This study concludes that results there are a negative relationship between profit ratio and noninterest expense ratio. An increase in noninterest expense ratio leads to a decrease in profit margin. Regression results indicate that there is a negative relationship between profit ratio and liquidity ratio. An increase in liquidity ratio leads to a decrease in profit margin. Regression results in indicate that there is a positive relationship between profit ratio and asset quality ratio. An increase in asset quality ratio leads to an increase in profit margin. The study concluded that t there is a positive relationship between profit ratio and financing ratio. An increase in asset financing ratio to an increase in profit margin.Policy recommendation:This study recommends that financial institutions should improve the interest income ratio by aggressive marketing their loans products and expanding their market territory. They should also improve non-interest income ratio, non-interest expense ratio, financing ratio, liquidity ratio and asset quality ratio
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