Micro and Small Enterprises (MSEs) play a key role in economic development of the informal sector of many nations. Vast literature on MSEs growth cites financial challenges for startups and working capital. To address this gap, Many Microfinance Institutions have targeted Micro-Entrepreneurs with credit, savings products however; limited studies have addressed the extent in which such initiatives have stimulated the entrepreneurial spirit of individuals targeted. Kisumu, Siaya and Vihiga counties of Western Kenya which were targeted in this study lie in the same economic belt and share similar business culture. The Micro Financing Services explored in the study included Microcredit and Savings Mobilization. The study targeted 65,698 MSEs out of which a sample of 398 was selected. The study purposed to examine the effects of Micro financing services on the performance of MSEs. The study employed descriptive survey design and used structured questionnaires to collect primary data. Data was analyzed using statistical software (SPSS) and presented in descriptive and inferential statistics. The study found that access to microcredit and savings mobilization as independent variables significantly explains the variance in MSE Performance. The study conclusion is that micro-financing contribute to MSEs growth and expansion. The study recommends Public-Private-Partnership whereby Government provides guarantee funds to financial institutions who advance loans to MSEs, as well Government to provide tax incentives to financial institutions that specializes in financing the MSEs sector in Kenya. An in-depth study could be conducted to find out if, financing of MSEs contribute to increase in employment.

Effects of Non-Financial Services of the Micro Financing Institutions on Performance of Entrepreneurship: A Study ofSelected Counties in Western Kenya IntroductionUnited Nations 2030 Agenda, identified Micro and Small Enterprises (MSEs)as critical in achieving the Sustainable Development and its Goals, at regional levels, MSEs plays and will continue playing an important role in increasing intraregional and interregional trade as envisaged in the regional economic blocs, especially the recently launched African Continental Free Trade Area (International Trade Centre, 2019). While in Kenya Vision 2030, the long-term development blueprint that seeks to transform Kenya into a newly industrialized, high middle-income country, recognizes the key role of micro, small and medium-sized enterprises (MSMEs) in attaining its goals (GOK, 2007). The Micro and Small Enterprise Act 2012 (MSE Act 2012) Laws of Kenya define Micro Enterprises as having annual turnover of less than Ksh 500,000, and employ up to ten employees, while Small Enterprises are those with Annual Turnover of between Ksh 0.5million and Ksh5million and employs between ten to fifty employees (GOK, 2012).Micro, Small and Medium Enterprises (MSMEs) are very important to employment creation, poverty alleviation and sustainable economic development of developing countries (Mwaanga, 2014). SMEs employ more than 80% of the working population in Kenya and play a central role in its economic and growth strategies. Efforts to make MSEs more competitive can help the country achieve its development objectives by creating more jobs, strengthening sectors and developing business models that work. Policy and business reforms that include developing the trade support ecosystem and capacity building at the firm level aim to help Kenyan MSEs become more competitive -nationally, regionally and globally (ITC, 2019).