Monitoring and Evaluation Communication, Organizational Culture and Performance: An Empirical Analysis of Microfinance Institutions in Kenya

Microfinance Institutions (MFIs) are essential for boosting Small and Medium Enterprise (SME) projects through affordable credit services. Monitoring and evaluation (M&E) communication, as well as organizational culture are key functions that enable MFIs to improve financial services and performance. However, relationship between M&E communication, organizational culture and performance of MFIs remains under-investigated in the academia, limiting the potential of MFI financial services to SMEs. This study sought to determine the influence of M&E communication on the performance of MFIs financing SMEs in Kenya; as well as establish the moderating effect of organizational culture on the relationship. The cross-sectional survey design with mixed methods was used, and primary data obtained from 354 respondents, including 36 MFI managers, 144 departmental heads, and 174 entrepreneurs. Analysis techniques included descriptive, correlation co-efficient (r<sub>s</sub>), simple and multiple linear regression (with interaction term) for quantitative data; and thematic analysis for qualitative data. Key results show that M&E communication had an average positive and significant influence on performance of MFIs (Beta = 0.477, t = 10.254 & ρ-value = 0.009). Organizational culture strengthened the relationship between M&E communication and performance of MFIs by 9.3% and its effect was significant. The study concludes that M&E communication significantly enhances MFI performance, with organizational culture strengthening this relationship by turning information into actionable insights. It underscores the need for MFIs to implement comprehensive M&E communication frameworks that prioritize clarity, inclusivity, and timeliness, and tailor communication channels and language to stakeholders’ needs and contexts. The study further calls for regular staff training to enhance learning and performance, a culture of openness, collaboration, and accountability to support effective use of M&E findings.