This study discusses the effects of Microfinance credit on the performance of Small and Medium enterprises in Uasin Gishu County, Kenya. The study targeted over 5,000 entrepreneurs with a sample size of 47 SMEs. The study employs an ex-post facto design. The instruments used in this study were open and closed ended Questionnaires, observation and interview guide. Face and content validity was used to ascertain the conceptual clarity and investigative bias. The study used simple random sampling of 47SMEs out of the SMEs there were 17 SMEs did not take loan with MFIs while 30SMEs have loans with MFIs. Data was presented through the use of frequency tables, pie charts and percentages. Data was analyzed using inferential statistics. In the final analysis, the research clearly found that MFC have a positive effect on the performance of SMEs with a level of significant of less than 5%. In order to enhance a sustained and accelerated growth in the operations of SMEs credits should be client-oriented and not product- oriented. It’s concluded that MFIs are concerned with provision of financial services to people who are economically poor and who therefore experience financial exclusion in that they do not have ready access to mainstream, commercial financial services. It is concerned with provision of financial services to poor people using means which are just, fair and sustainable for example they accept social collateral rather than financial collateral, access to larger amounts of loan if repayment is performance is positive, easy way to access finance in not much paper work, and easy and short procedures.
Keywords: Microfinance Credit, Performance and Small and Medium Enterprises
