INFLUENCE OF CORPORATE GOVERNANCE PRACTICES ON PERFORMANCE IN KENYA’S PUBLIC SECTOR: A SURVEYOF SELECTED NATIONAL GOVERNMENT MINISTRIES

Abstract

Corporate governance has become an issue of global significance. Globally, the public sector plays a central role in socio-economic development but the sector has however been affected by globalization, public sector reforms, regional and international partnerships among other factors. Kenya’s public sector organizations need good governance in order to realize efficiency and better service delivery as enshrined in Vision 2030 that envisages new structure of governance that can only be achieved in an environment of good corporate governance practices. The general objective of this study was to investigate the influence of corporate governance practices on performance in Kenya’s public sector. Quantitative data was analyzed descriptively while inferential statistics employed regression analysis to test hypotheses. The target population in this study comprised of selected government offices and respondents was senior management employees working in those ministries. An appropriate sample was determined through stratified random sampling approach. Primary data was collected using structured questionnaires. The analysis was done using SPSS. The results were presented using tables and corresponding narratives. Linear regression analysis revealed a positive and significant relationship between leadership skills and performance. The study thus rejected the first null hypothesis and revealed that there is a positive significant relationship between leadership skills and performance in Kenya’s public sector. It was also established that risk management is a significant predictor of performance. The study thus rejected the second null hypothesis and revealed that there is a positive and significant relationship between Risk management and performance in Kenya’s public sector. A positive and significant relationship between transparency and performance was further established, hence rejecting the third null hypothesis and confirming that there is a positive relationship between transparency and performance in Kenya’s public sector. A positive and significant relationship was also established between accountability and performance, hence the study rejecting the fourth null hypothesis and revealing that there is a positive significant relationship between accountability and public sector performance in Kenya. The test for moderation revealed no significant moderator effect and concluded that work environment is not a significant moderator of relationship between corporate governance practices and performance in Kenya’s public sector.