The study looked at how credit risk management affects the financial performance of microfinance institutions in Kampala, Uganda. They surveyed staff from three microfinance institutions and analyzed their annual reports. The results showed that identifying and appraising credit risks positively impact financial performance, while monitoring and mitigating credit risks also have a positive effect, but to a lesser extent. The study suggests that focusing on effective credit risk management techniques can help microfinance institutions improve their financial performance.