The study aimed at determining the influence of organizational culture on the performance of microfinance institutions in Kenya. A descriptive cross-sectional survey design was adopted. Secondary data were collected from annual reports by the Association of Microfinance Institutions in Kenya and the Microfinance Rating Africa. Primary data were collected using structured questionnaire targeting the chief executive officer, human resource manager, and marketing manager. Data were analyzed using factor analysis and hierarchical regression. Our analysis identifies clan and hierarchy as the dominant cultural typologies in the microfinance industry. The results obtained demonstrate that organizational culture has a significant influence on non market performance. In addition, market culture is inversely associated with debt/equity ratio. We conclude that organizational culture is a major source of sustainable competitive advantage in the microfinance industry. Furthermore, we conclude that market culture promotes financial independence and sustainability in the long term. Keywords organizational culture, performance, competing values framework, debt/equity ratio, microfinance SAGE Open assumptions adopted by the majority of the organizational members are at the core of culture. Whereas assumptions are not directly observable, they are the cerebral level of culture and are inferred from organizational values and artifacts. Assumptions are the mental models used by managers and employees to make sense of the environment (Harris, 1998). Values are the socially constructed principles that guide behavior and are reflected through the spoken and audible goals, philosophies, and strategies. Artifacts are the visual and tangible layer of culture and consist of signage, branding, and physical settings of the establishment. Cultural values and assumptions build the mental frame for reasoning and responding to stimulus from the business environment. The values and assumptions determine organizational members' perception of time, nature of human activities, and horizontal as well as vertical relationships at the various levels within the organization. The study of organizational culture has attracted a plethora of epistemological perspectives over the years. The current study adopts the competing values framework (CVF) to describe and measure organizational culture in the microfinance industry. The CVF assumes that organizations exhibit two dimensions, namely, environmental focus and internal organization as the central attention (Cameron & Quinn, 1999). The competing values theory assumes that organizational complexity breeds different types of culture (Westrum, 2004) and a single type of culture cannot distinguish an organization (Choi, Seo, Scott, & Martin, 2010; Deshpande, 1993). Therefore, in balancing the requirements of different stakeholders, firms make overt and implicit choices in the degree to which their cultures exhibit values and norms that are representative of four different cultural orientations comprising clan, ...