Corporate Governance and Performance of Selected Savings and Credit Co-operative Society in Nairobi County, Kenya

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Published: 2023-01-28

Page: 40-50


Akinyi Tabitha Lennah *

Business Administration Department, School of Business, Economics and Tourism, Kenyatta University, P. O. Box-43844-00100, Nairobi, Kenya.

Shadrack Bett

Business Administration Department, School of Business, Economics and Tourism, Kenyatta University, P. O. Box-43844-00100, Nairobi, Kenya.

*Author to whom correspondence should be addressed.


Abstract

The study examined the effect of corporate governance on the performance of SACCO in Nairobi County, Kenya. Specifically, the study investigated the effect of board independence, board composition, ethical considerations and board policies/procedures on the performance of SACCO in Nairobi County, Kenya. Three theories (stakeholders’ theory, agency theory and balance scorecard) were used to underpin the study. The study had a population target of 6 DT SACCOs with senior management as respondents. Purposive sampling was used to identify respondents due to their level of information needed in the study. The outcomes of the study revealed that board independence has positive and significant effect on selected SACCOs’ performance; Board composition has positive and significant effect on selected SACCOs’ performance; ethical consideration has positive and significant effect on selected SACCOs’ performance; and board policy/procedure has positive and significant effect on selected SACCOs’ performance in Nairobi City County, Kenya. The study suggests that SACCOs’ management should ensure that high degree of freedom be accorded to the board members which allow them to freely engage in proper decision-making process. The management of the SACCOs should implement policies that would discourage gender disparity amongst board members. This would ensure integration of ideas across both gender thereby fusing ideas that would optimal the performance of the SACCOs.

Keywords: Corporate governance, board independence, board composition, ethical consideration, board policy, performance


How to Cite

Lennah, A. T., & Bett, S. (2023). Corporate Governance and Performance of Selected Savings and Credit Co-operative Society in Nairobi County, Kenya. Asian Journal of Economics, Finance and Management, 5(1), 40–50. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/1762

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