International Journal of Economics, Commerce and Management United Kingdom Vol. VI, Issue 1, January 2018 Licensed under Creative Common Page 308 http://ijecm.co.uk/ ISSN 2348 0386 EFFECTS OF CORPORATE GOVERNANCE PRACTICES ON GROWTH OF MICROFINANCE INSTITUTIONS IN KENYA Joseph Momanyi Kabarak University, School of Business and Economics, Kabarak, Kenya josephmomanyi570@gmail.com Philip Ragama Kabarak University, School of Business and Economics, Kabarak, Kenya pragama@kabarak.ac.ke Patrick Kibati Kabarak University, School of Business and Economics, Kabarak, Kenya kibati@yahoo.com Abstract This study seeks to analyze the effect of corporate governance practices on the growth of microfinance institutions in Kenya. The objectives of the study were to analyze the effect of financial accountability on growth of microfinance institutions, assess financial sustainability on growth of microfinance institutions and establishing how financial transparency affect the growth of microfinance institutions in Kenya. This was a census study based on all the 43 non-bank deposit-taking microfinance institutions registered with Association of Microfinance Institutions (AMFI). Normality tests were carried out using the Kolmogorov-Smirnov normality test. The data was subject to both descriptive and inferential statistics. It was found out that only financial transparency was a statistically significant predictor of asset growth among institutions registered with AMFI-K. It was concluded that not also aspects of the corporate governance induce growth in the industry. This study recommends that the country therefore needs to strengthen policies to improve institution-level corporate governance in order to attract investors and bolster overall growth. Keywords: Corporate governance, financial sustainability, financial transparency, microfinance, microfinance industry, industry growth