Micro finance services have attracted attention among scholars because it has been widely acknowledged as a poverty alleviation policy as well as program. Traditionally, larger financial institutions have been reluctant to advance financial services to the poor because of the relatively high risks involved resulting into a financial gap. Majority of the MSEs do face challenges especially in regard to access to financial services from larger financial institutions including commercial banks. Because of their relative small sizes, most commercial banks consider lending to MSEs as being too risky. The implication of this decision to lend to MSEs by banks is that the operations of most of them are constrained hence poor performance. Thus, most of the MSEs have turned to MFIs as financial partners which has piled up pressure on MFIs for seeking funds. The present inquiry focused on micro finance services and their link with the ability of the Micro-Small Enterprises (MSEs) in Kenya to financially perform. Specifically, the study looked at the products and services that MFIs offer among MSEs and the link between them with the ability of the firms to perform financially. Descriptive survey design was adopted targeting 100 MSEs. Census was used with gathering of information from primary and auxiliary sources. The processing of the gathered data was done aided by SPSS tool using frequencies and percentages. Inferential statistics covering correlation and regression analysis were conducted prior to diagnostic tests. The study noted that Micro finance Institutions offered loan/credit services and products, saving services and products and insurance services to MSEs. The microfinance services offered to MSEs were seen to have a postive effect and relationship with financial performance as controlled by their sizes. The study concluded that MFIs play an important intermediation role in the economy by availing credit facilities to small business that are used to enhance their financial performance. The study recommended that marketing managers of the MFIs should expand the product offering to bring in more new products that are customized for small businesses. The marketing managers of the MFIs in Kenya should invest heavily in promotion and advertisement of loan and insurance product that they offer customers. The finance managers and owners of the MSEs in Nairobi to seek for more credit and loan facilities from MFIs and ensure that the amount is utilized for the purpose of enhancing financial performance of their enterprise. The risk managers of the MSEs operating in Nairobi to increase underwriting of risks with MFIs as this enhances financial performance of their enterprises especially in the event of a calamity. The CBK should formulate stable policies that promote and support the microfinance services and products. The study was limited to a small sample size that affected generalization of the results to other non MSEs firms. The study recommend further studies to be done to bring out the services and products offered by deposit taking Savings and Credit Cooperatives (SACCOs) as they link with financial performance of the small firms. Future studies can also be conducted by singling out firms specifically in the SME category.

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