The MSMEs in Kenya have not performed creditably well and hence has not played expected vital and vibrant role in the economic growth and development of Kenya. The study focused to determine the influence of cost of micro credit in accessing micro credit by the MSMEs in Baringo central constituency. This study used descriptive research method where stratified random sampling was used to select the respondents. The researcher categorized each of the divisions as a stratum and 90 respondents were selected from the four strata proportionately depending on the population of MSMEs in each of the divisions. The researcher used structured questionnaires to collect the data. The data were coded and analyzed using the Statistical Package for Social Sciences (SPSS). The results of the study reveal that micro credit cost affect the financial performance of MSMEs in Baringo Central Constituency, Baringo County. We conclude that micro credit cost is a significant variable in financial performance of MSMEs in Baringo Central Constituency, Baringo County. The study recommends that the MSMEs in Baringo Central Constituency, should take into account the micro credit cost since the study revealed a positive significant effect on financial performance by this attribute.
Keywords: Micro-credit cost, financial performance, Micro small and Medium Enterprises