A dissertation submitted in partial fulfilment of the requirements for the award of the Master of Science in Commerce in the School of Business and Public Administration at KCA University
The study was to investigate the role of corporate governance practice on financial performance of SACCOs in public sector in Nairobi. The general objective of study was to determine the role of corporate governance practice on financial performance of SACCOs in public sector in Nairobi. Specific objectives were to determine the impact of organization structure on financial performance of SACCOs, to determine the impact of composition of the committee on financial performance of SACCOs, to determine the impact of ownership structure on financial performance of SACCOs and to assess the impact of executive remuneration on financial performance of SACCOs. Research was to answer the following questions, what are the roles of organization structure on financial performance of SACCOs, does the composition of the committee affects financial performance of SACCOs, what are the effects of ownership structure on financial performance of SACCOs and how does the executive remuneration affect financial performance on SACCOs. Researcher used descriptive survey method. The population of study was 44 SACCOs in public sector, that is, the SACCOs that primarily serve employees of various government ministries of Kenya. Researcher used census. The targeted respondents were finance officer, credit officer and administration officer from each SACCOs in population, this total to 132 respondents. Out of the targeted respondents only 108 responded. The research found that effective organization structure improve financial performance of SACCO, effective executive remuneration scheme affect financial performance positively, effective board committee improve financial performance, ownership of many shares by elected committee members affect financial performance positively and when board size is small financial performance is affected positively. The study concluded that corporate governance affect financial performance positively. The recommend SACCOs to accept corporate governance, to be having effective executive remuneration scheme, elected committee members to be allowed to have many shares and SACCOs to be having small board size. A further study should be done to investigate role of corporate governance in SACCOs in different sectors of economy and also a further study to be carried out to find out impact of corporate governance on SACCOs that has complied with the SASRA regulation.
