Corporate Governance Practices and Performance of Kenya Medical Supplies Authority in Nairobi City County, Kenya
| dc.contributor.author | Mwangi, Alice Njeri | |
| dc.date.accessioned | 2026-02-05T06:13:48Z | |
| dc.date.available | 2026-02-05T06:13:48Z | |
| dc.date.issued | 2025-11 | |
| dc.description | A Research Project Submitted to the Department of Public Policy and Administration in the School of Law, Social Sciences and Humanities for the Partial Fulfillment of the Award of Master of Public Policy and Administration in Kenyatta University Supervisor David Minja | |
| dc.description.abstract | Kenya Medical Supplies Authority has struggled to establish a clear framework for contract administration, affecting order delivery both internally and externally. According to the PPRA report (2020), KEMSA has been starting procurements without a plan, lacks integration in its supply chain for both inbound and outbound flows, and is beset by corruption, awarding contracts to politically connected people without considering the supply risks involved. Also, KEMSA ceased to supply medications to the hospitals on level four in Nairobi due to arrears that were not paid. The company was accused of having supply chain flaws, which resulted in the sale of free HIV medications provided by donors to two hospitals in Kisumu. Furthermore, KEMSA and Revital Health (EPZ) Limited were involved in a disagreement regarding a tender to provide the organization with syringes. While several studies have focused on the subject of corporate governance and firm performance, there are methodological, conceptual and contextual knowledge gaps that remain unaddressed. The objectives of the study were to, determine the effect of effect of board composition, board quality, board independence and board audit function on organizational performance of KEMSA in Kenya. The study variables were anchored on Agency Theory and Resource Dependency Theory. The target population consisted of stakeholders from the Kenya Medical Supplies Authority, with 36 respondents drawn from various categories. Descriptive research design was used. Due to the small number of respondents, a census approach was adopted for the study. Primary data was collected using a likert questionnaire. Content and construct validity was tested with the help of the university appointed supervisor. Reliability was tested using the Cronbach Alpha score and the threshold was 0.7. The researcher was guided by Kenyatta University research ethical code. Participation was voluntarily, informed consent was sought and confidentiality adhered to. The study established that board composition at KEMSA is a good governance measure which ensures good decision making and strategic planning since it comes with diverse skills and experience. They believed independent directors were necessary to bring objectivity and to avoid conflicts of interest. Having board members who have healthcare experience helped the board to handle sector specific challenges. Respondents found the board size to be optimal while diversity was related to better service delivery and institutional performance. Professionalism and ethical standards were viewed positively in terms of board quality, but training efforts were inconsistent. There was independence of the board from management, the board effectively overseeing management with autonomy supported by regular evaluations. The results show that board composition has a statistically significant and positive effect on organizational performance; the implication is that diversity and structure matter. It was anticipated that board quality would contribute to performance but the findings also suggest that too much emphasis on formal qualifications may reduce practical effectiveness. The Ministry of Health and the Public Service Commission should enforce policies promoting diverse and well-structured boards in health sector state corporations. Recruitment criteria should prioritize relevant sector expertise alongside formal qualifications. Audit committees should be strengthened through capacity-building initiatives to improve their effectiveness in financial oversight and governance. Partnerships with regulatory bodies should be formalized to provide independent oversight, ensuring greater transparency, accountability, and improved performance in health sector state corporations | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32270 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Corporate Governance Practices and Performance of Kenya Medical Supplies Authority in Nairobi City County, Kenya | |
| dc.type | Thesis |