The Effect of Corporate Governance Practices on Performance of Deposit Taking Savings and Credit Cooperative Societies in Kiambu County, Kenya
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Date
2020
Authors
Anne, Miano
Gitonga, Esther
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
Corporate governance is regarded as the key foundation upon which organizations are more productive,
better managed and controlled. Performance has a link to good corporate governance for the
sustainable organizational success. This project narrowed down specifically to the factor of corporate
governance to determine the practice of corporate governance in SACCOs in Kiambu County, Kenya.
The researcher used a descriptive survey design in soliciting information on the practice of corporate
governance in SACCOs in Kiambu County, Kenya. The research also made use of both secondary and
primary data. Secondary data was collected from statistical data available from the SASRA records and
those from the Ministry of Cooperatives. Primary data was obtained by use of a closed ended
questionnaire administered on senior managers of the sampled SACCOs. The target population was 8
deposit taking SACCOs and a total population of 200 SACCO managers in Kiambu County, Kenya.
Each SACCO had a different number of respondents depending on its size and the number of senior
managers in it. Data analysis was done using Statistical Package for the Social Sciences (SPSS) to
generate quantitative reports which is presented in this project in the form of tabulations, percentages
and descriptive statistics and inferential data computed using a regression equation. The findings of this
project are that the practices of corporate governance have a direct effect on the overall performance of
SACCOs in Kiambu County, Kenya contributing to 70% of the factors affecting performance.
Recommendations put forward from the findings of this project is that there is need to research on the
effect of corporate governance on performance of other institutions such as commercial banks,
microfinance institutions and small and medium enterprises. The findings of the research include the
finding that majority of those in senior positions in the SAACOs sampled are men at 64% of the sample
size while women are at 36%. Another finding of the research is that majority of those in senior
management positions are persons aged between 40 and 59 years. The research further brought out the
fact that majority of the respondents comprising of 39% had held their current position for a period of
between 4 and 6 years while 42% of the respondents had worked in the SACCO for a period of between
10 and 12 years. One of the recommendations from the research is on the need to have increased
disclosure of information to the shareholders. A further recommendation was the need to train the board
of governance often on corporate governance so as to better equip them to uphold the practice in their
respective SAACOs. A final recommendation is the need for further research by other scholars.
Description
A Paper Published in International Journal of Business Management, Entrepreneurship and Innovation
Keywords
Corporate Governance Practices, Equitable Treatment, Transparency, Accountability, Deposit Taking Savings, Credit Cooperative Societies
Citation
Gitonga, E., & Miano, A. (2020). The Effect of Corporate Governance Practices on Performance of Deposit Taking Savings and Credit Cooperative Societies in Kiambu County, Kenya. International Journal of Business Management, Entrepreneurship and Innovation, 2(2), 64-81. https://doi.org/10.35942/jbmed.v2i2.118