Factors Affecting Corporate Governance In Makueni County

Abstract

Effective corporate governance in the public sector is imperative for better decision making, efficient resource use and strengthened accountability. It entails robust scrutiny aimed at the provision of necessary pressures for improving performance in the public sector as well as tackling corruption. If well implemented, corporate governance has the potential of improving management and subsequently results in the effective implementation of the chosen interventions, better service delivery, and, ultimately, better outcomes and in the process improving peoples’ lives. The aim of decentralization and subsequent introduction of county level governance was basically focused on delivering good governance practices at the county level. Good corporate governance practices in Makueni County should assist and encourage the elected leadership, councils and management to institute and uphold a clear focus on performance, transparency and accountability. However, even where good systems, processes and organizational structures are instituted; there are potential pitfalls and problems that may arise in the day-to-day operations of County governments. Such pitfalls may include issues to do with ethics, corruption, politics and even resource availability. Matters of integrity combined with the right mix of skills and expertise amongst the individuals involved in County government management, including executive and nonexecutive board members and the management and employees in such organizations are also vital components of their overall success. This study therefore is aimed to explore the factors that affect corporate governance in Makueni County. The study focused on the effect that resource allocation, ethics, corruption and politics have on corporate governance. The study adopted a descriptive research design. The target population comprised of 76 individuals holding various leadership positions in the county who include, political leaders and county administrators. Given the small size of the population, the researcher carried out a census. Questionnaires were used for data collection and they were structured according to the objectives of the study. They were administered through drop and pick method. Data collected was coded, edited and finally analyzed using SPSS version 20 and Microsoft Excel spreadsheets. Results of the study revealed that there was a positive and significant relationship between resource availability, ethics, politics and corporate governance while corruption had a negative significance influence on corporate governance. There is need to sensitize on means of raising more resources, adherence to professional ethics and elimination of negative politics in the County. County administration ought to devise mechanisms to address corruption levels in the County and consequently reap the benefits of corporate governance.