Abstract:
This study focused on assessing the determinants of microfinance sustainability after Covid –
19 in comparative study of Vision Fund and Finca microfinance bank in Njombe district.In
particular, the study assessed the extent on how MFIs sustainability is merely impacted by the
level of outreach, management efficiency, loan portfolio and portfolio risk for financial
sustainability. Two microfinance banks used in this study namely Vision Fund and Finca, both
of these bank are in Njombe District. Study involved two theories which are Resource Based
Theory and Contingency Theory. The study comprising 2 operating microfinance banks in
Njombe and the targeted population will be 137 respondents however 102 informants recorded
as sample size through simple random selection by using Yamane. The study employed
questionnaire in data collection, Casual Comparative research design, quantitative approach,
qualitative and quantitative data analysis that involve usage of correlation analysis. The data
being coded and entered into the computer using statistical package for social sciences (SPSS).
Among of the research findings includes that clients are not paid their loans on time, thus caused
arrears and attributed losses, irrational decision making in recovery plans for the increased
portfolio at risk, small value of loans do not bear to substantial income and some of clients are
defaulting because of high interest rates charged. However, policy makers and investors need
to articulate sound policies and alternatives ways of doing business in the circumstance of pandemic
