More than ever there is a global concern to entrench financial deepening and access to previously
ignored areas considered economically unviable where majority of the micro and small
enterprises operate through provision of technology based financial products and services.
Financial literacy has been appreciated as a means to an end by offering skills and knowledge to
change attitude and attract more potential users of agent banking. Kenya, like the majority of
African countries, has been lacking an institutionalized national science, technology and
innovation system of indicators to support evidence-based policy formulation, implementation
and maintenance to support national development. The purpose of this study was to examine role
of innovation on the growth of MFIs in Nairobi towards the realization of vision 2030. The study
employed desk top research. The overall objective of the study was to build MFI’s capacity to
develop and use innovation indicators in designing and implementing innovation policies and
strategies for national development. The study was an attempt to probe the activity of innovation
through the collection of data on various aspects of innovation in order to develop relevant
innovation indicators and specific innovation policies for firm growth. This study established
that most firms in MFIs have embraced innovation as a key driver of their competitiveness hence
realization of vision 2030. The results of this study will contribute to increased knowledge about
innovation in firms in order to devise appropriate innovation policies. The need for evidencebased
policy processes is now gaining ground.