Corporate Governance Procedures and Health Service Delivery in Embu Level Five Hospital, Embu County, Kenya
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Date
2025-05
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Kenyatta University
Abstract
The adoption of effective corporate governance can enhance performance for both private and public sector organizations. Substantive scholarly attention has focused on corporate governance in developed economies at the expense of developing nations where political and economic considerations play out. This study focused on adoption of corporate governance procedures in devolved governance in Kenya. The study specifically examined the influence of corporate governance procedures on service delivery in Embu Level Five hospital in Embu County, Kenya. Four objectives were formulated for this study. To begin with, this study explored the reforms initiated by the Embu County government in the implementation of corporate governance procedures in Embu Level Five Hospital. Second, the level of independence and autonomy of the board of directors in Embu Level Five Hospital was assessed. Third, conflict of interest between managers and stakeholders in the management of Embu Level Five Hospital was analyzed. Finally, this study evaluated the effects of implementation of corporate governance procedures on service delivery in Embu Level Five Hospital. This study was anchored on two complementary theories namely the agency and the stewardship theories. The agency theory was used in this study to explain the pursuance of self-interests by agents who have been trusted by the principals to run organizations on their behalf. The stewardship theory argued that performance can be enhanced if managers truly identify with the goals and objectives the organization. This happens when the board of directors works together with the management to achieve the objectives of the organization. To accomplish its goals this study employed both primary and secondary sources of data collection. A total of 380 respondents were selected for field interviews. Questionnaires were distributed to 360 residents of Embu County who included men, women and the youth. This category of respondents was identified through random probability sampling. Interview schedules were administered to 20 purposively selected respondents who include members of the board, management and medical personnel in Embu Level Five Hospital, personnel from County health sector, politicians from the county and experts in corporate governance. Data collected was analyzed and interpreted quantitatively and qualitatively. The study finding indicated that the County Government of Embu initiated corporate governance reforms aimed at improving performance and provision of health care services. Reforms initiated include; appointment of a an independent board of directors, introduction of transparent tendering and procurement procedures, instituting stringent financial accountability and strategies to curb corruption and bribery, introduction of performance contracting among workers. The independence of the appointed board of directors in charge of the Level Five Hospital laid a foundation for the development of an efficient health care system and improving the delivery of health services. This study noted of the existence of conflict of interest between managers and other stakeholders in the management of Embu Level Five Hospital. The adoption of effective corporate governance reforms was found to have been a crucial strategy in strengthening and transparency in the management of the County Hospital.
Description
A Research Project Presented to the School of Law, Arts and Social Sciences in Partial Fulfilment for the Award of the Degree of Master of Arts in Public Policy and Administration of Kenyatta University, May 2025
Supervisors;
1.Lazarus Kinyua Ngari