| dc.description.abstract | Kenyan SACCOs have been growing at a rate of 25% per year. For instance, in the year 2012,
the SACCOs industry's total assets grew by 17.8% to Ksh.292.9 billionin 2012 from Ksh.2487
billion in 2011 contributing 45% GDP. Besides, corporate performance literatures show that
corporate governance practices are important in driving firm performance. Previous studies focus
on the relationshi p between corporate governance mechanisms and performance among listed
firms failing to analyze corporate adoption governance practices and performance of SACCO
societies in Kenya. Therefore, the extent of board composition, inclusion of independent nonexecutive
board members, and extent of board leadership of KITE SACCO society are
unknown. Therefore, the purpose of this study is to analyze corporate governance practices and
performance of Kl'Tf SACCO society, Kisurnu City, Kenya. The specific objectives ot the study
were iu assess the extent of board cornposuion; establish the extent 0(' Inclusion of nonexecutive
directors in the board and determine the extent of board leadership of KITE SACCO
Society The study was anchored on agency theory. It adopted descriptive research design. The
target population of the study was all the SACCO's 19 employees. Primary data and secondary
data were obtained through semi-structured questionnaire and desk review methods respectively
Validity and reliability of the instrument was checked using expert reviewers and test-retest
methods on 2 respondents who were excluded from the final sample (a > 0.701) implying
internal consistency. Data was analyzed using descriptive statistics such as mean and standard
deviation while data presentation was done using tables and charts. The study revealed that;
board composition had a mean of 4.000 and a standard deviation of 1.2274 implying that board
composition was practiced to a very high extent; inclusion of independent non-executive board
membership had a mean of 2000 and (1 standard deviation of 1.201 in'plyir.g that it was
practiced to a low extent and board leadership had a mean of 4.000 and a standard deviation of
1.546 imolvinz that this was practiced to a h100h extent. The study concludes that: board .• .,. ••..• 1 "
composition is practiced to a high extent; inclusion of independent non-executive directors is
embraced to very small extent and board leadership is practiced to high extent. The
recommendations of the study are that; KITE SACCO should intensify board composition;
management of KTTE SACCO should improve on the extent of adoption of inclusion of
independent non-executive directorship and the Society should intensify adoption of board
leadership governance mechanism. The research findings may be significant to SACCO
Societies' policy makers in designing appropriate corporate governance mechanisms. In addition,
the research will provide new empirical evidence on the corporate governance practices and form
a basis for future research in the area | en_US |
