Dissertation (MA Business and Economics)This study examined the impact of corporate governance on the performance of a firm. Three elements of corporate governance were involved namely board of directors’ size, board of directors’ composition and audit committee composition were assessed to find out their relations to Microfinance Institutions (MFIs) financial performance. This study was done to contribute specific insights on the relationship and influence of corporate governance on firm performance especially due to limited literature in Tanzania. The study used a cross-sectional design, in which data were collected at a single point in time. Quantitative data were collected from 80 CEOs/Managers of MFIs under study. Descriptive, simple and multiple regression analyses were done to get general information on the respondent’s characteristics and corporate governance components and influence on MFIs performance. The study found that most of the respondents (53 of them) which is equivalent to 66.2%, had the title of managers or supervisors and 14 respondents equivalent to 17.4% were the CEOs/directors. Moreover, MFIs agreed to have boards with independence (M=4.48, SD=0.49) and gender diversity (M=4.67, SD=0.41). However, the respondents were uncertain on whether the large size of the board provides more experience and expertise to the board (M=3.48, SD =0.872). Yet MFIs agreed to have an audit committee with members who have accounting/auditing/finance expertise. Findings from regression results further show that the relationship is significant between board size, board composition (board independence and gender and geographical diversity) and audit committee composition (educational background and experience in microfinance issues) with firm performance. The study concludes that corporate governance influences the financial performance of MFIs. The study recommends that MFIs and policymakers should ensure that the board of directors be independent with the gender diversity and the audit committee be composed of members who are experts in accounting/auditing to enhance performance.