Corporate governance practice and its effects on efficient performance in transport SACCO: the case of Super Highway 45 SACCO in Nairobi City County, Kenya.

Abstract

The study sought to investigate the effects of corporate governance practices on efficient performance of Transport SACCOS. This is because SACCOS play a significant role in Kenya's economy by providing opportunities to many people to grow through access to savings, affordable credit and employment. The mobilization of savings is crucial in national economic activities since it is the savings that arc invested to spur economic growth. Corporate Governance is now being widely adopted as a requirement and a prerequisite both in public and private entities for successful improved efficient performance and prosperity. This is because, of late it has been witnessed that numerous Transport SACCOS have been formed and are operating on our roads. The objectives of the study were to investigate whether board size, composition and corporate disclosure which are attributes of corporate governance have effect on efficient performance of superhighway 45 SACCOS. The study used descriptive research design, and used qualitative method of data collection by administering a closed and open ended questionnaire to a sample of respondents' couple with scheduled oral interviews. A sample of respondents were randomly selected from the ACCO and using purposive random sampling technique, respondents from directors and management were selected randomly to answer the questions to gather primary data, while secondary data was acquired from books and journals consultation on existing research. Data from the two sources was corroborated and then analysed using SPSS. Data was presented in frequency tables and figures. The study revealed that board size, composition of the board and corporate disclosure are crucial for efficient performance. The study recommends that Transport SACCOS should adopt corporate governance practices in order to improve efficiency in performance. It is anticipated that knowledge gained from the study is to be used to improve efficient performance and management of Transport SACCOS in Kenya.