The study aimed at assessing the influence of short-term loans performance on financial sustainability of Microfinance Institutions in Imenti North Sub-county, Kenya. The study adopted a descriptive r e s e a r c h design. The target population consisted of 33 respondents. Self administered structured questionnaires were administered by the researcher. Descriptive statistics and correlation analysis were used to analyse the data. It was established that MFIs offer short term loans such as emergency loans, education loans, farming loans, micro loans, salary advance and insurance premium financing. It was also established that MFIs carry out thorough analysis of the potential borrowers prior to disbursing the loans. It was further established that returns on short term loans are significantly correlated to the total short term loans.