Impact of corporate governance on the performance of Comercial Banks in Kenya:
Loading...
Date
2010-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
This survey was conducted between the months of February and June 2010. It is set to examine the
extent of the application of Corporate Governance practices in the banking sector in Kenya. The
survey was founded on the premises that Corporate Governance is a vital ingredient in maintenance
of a dynamic balance between the need for order and equality in society. Corporate Governance is an
integral part of the banking sector, considering the role played by the banking and financial
institutions. The survey also sought to establish if there is a relationship between the actual
Corporate Governance practiced in the banking sector and what the stakeholders expect.
The design used in this research was a survey of the descriptive kind. This design was used to
acquire a lot of information through description and was useful for identifying variables. Primary
data in this survey was collected using semi-structured questionnaires and was administered by face
to face interviews. The quota size of the study was respondents drawn from commercial bank in
Kenya (Machakos Branch). Analysis and results are shown through the use of percentages, mean
scores, standard deviations, and tables are then used to present the data.
Most of Corporate Governance practices are undertaken and implemented by the Board of Directors
and the top management. The level of involvement of the lower management and subordinates is
very low thus raising various issues such as; How qualified is the Board of Directors?, How
informed are the shareholders on matters of Corporate Governance?, and lastly how do you
determine the extent of the application of Corporate Governance practices in the banking sector.
This survey shows that it is important for the Board of Directors and the top management to be
highly qualified as this improves their performance and effectiveness thus improving the firm's
performance. The survey also shows that banks should improve their application of Corporate
Governance practices so as to bridge the gap between what is actually practiced in terms of
Corporate Governance and what the stakeholders of the bank expect to happen.
Description
Research project submitted to the school of business and management in partial fulfillment of the requirements for the award of Bachelor's Degree in business administration of Kampala International University
Keywords
Corporate governance, Performance, Comercial Banks, Kenya