This study examines effects of transformation on financial performance of microfinance NGOs in Kenya. More specifically; the study seeks to empirically analyze how the selected indicators of transformation affect financial performance of microfinance NGOs in Kenya. The study adopts a quantitative research approach based on unbalanced panel data for 19 years extending from the year 1997 to 2015 acquired from Microfinance Information Exchange (Mix) Market databank on six surveyed transformed microfinance NGOs in Kenya. The study employs panel data regression models. Results indicate that debt to equity ratio and debt to asset ratio are strong drivers of financial performance in the transformed microfinance NGOs in Kenya. Institutional size has revealed significant effects on all selected measures of financial performance. Institutional age showed insignificant effects on return on asset and return on equity but revealed a significant effect on operational selfsufficiency.