Innovation stands at the forefront of contemporary strategies for enhancing the growth and impact of microfinance institutions (MFIs) worldwide. This study investigates the multifaceted influence of innovativeness on the growth of MFIs in Murang'a County, Kenya, an area renowned for its vibrant microfinance landscape. Drawing on extensive empirical research and a robust analytical framework, this research elucidates the dynamic relationship between innovation and MFI growth. Findings show that when there when innovativeness is held constant, growth of microfinance institutions will be 1.501. At the same time, increasing innovativeness by 1 more unit would lead to an increase in growth by 0.631 units. This implies that the innovativeness has a positive relationship with growth of microfinance institutions. The relationship is significant given that pValue=0.000<0.05. The findings reveal that innovativeness is a pivotal determinant of growth for MFIs operating in Murang'a County. Specifically, MFIs that actively engage in innovation across various dimensions, including product diversification, service delivery channels, and technological advancements, tend to exhibit higher growth rates. Innovationdriven MFIs are better equipped to attract a broader client base, penetrate underserved markets, and enhance operational efficiency, all of which contribute significantly to their growth trajectories. However, the study also underscores the challenges associated with innovation in the microfinance sector. While innovation can catalyse growth, it requires substantial financial investments, human capital development, and a robust risk management framework. The dynamic regulatory environment in Kenya further complicates the innovation landscape, necessitating adaptive strategies that balance risk and reward. This research advances our understanding of the intricate relationship between innovativeness and MFI growth, offering valuable insights for practitioners, policymakers, and stakeholders in the microfinance ecosystem. The implications of this study resonate far beyond the boundaries of Murang'a County, as they contribute to the broader discourse on fostering sustainable and impactful microfinance operations in emerging economies.