Abstract:
The main purpose of this study was to assess the effects of product differentiation strategy on
corporate growth of Microfinance Institutions (MFIs) in Kenya. The study employed descriptive
and quantitative research designs. The target population was 57 firms and the sample size was 32
firms arrived at through stratified and purposive sampling methods. The questionnaire was the
primary data tool. The study found out that product differentiation strategy has significant effects
on corporate growth in MFIs in Kenya. It concludes that increased deployment of product
differentiation strategy increases corporate growth in MFIs in Kenya. It recommends that
managers should create, protect and maintain differentiated products and services in order to be
competitive in industry thus leading to corporate growth. Further, policy makers should find and
implement ways of encouraging MFIs to create and maintain product differentiation in their
portfolios.