Purpose: The purpose of this study was to evaluate the role of leadership in the transformation process of microfinance organizations in Kenya into deposit taking institutions.Methodology: This study adopted descriptive research design. For purposes of collecting primary data, the use of a questionnaire developed by the researcher was used. Data was then analyzed using Excel and SPSS and presented in tables, graphs and charts. A total of 120 questionnaires were distributed to the above five

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... nizations and 42 of them were returned. This represents a 35% response rate.Results: The study concluded that leadership plays a positive role in the transformation success. This conclusion was supported by correlation results which revealed that there is a positive correlation between leadership and transformation success. Therefore an increase in the effectiveness of leadership is associated with an increase in transformation success. The conclusions were also supported by regression results that revealed a positive and significant relationship between leadership and transformation success.Unique contribution to theory, practice and policy: The study recommends to the leaders of transformation organizations to be on the front line in communicating change to subordinates, supporting them as well as being actively involved in the change process.