EFFECT OF CORPORATE GOVERNANCE PRACTICES ON FINANCIAL PERFORMANCE AMONG PARASTATALS IN KENYA: CASE OF KENYA PIPELINE COMPANY (KPC), ELDORET
EFFECT OF CORPORATE GOVERNANCE PRACTICES ON FINANCIAL PERFORMANCE AMONG PARASTATALS IN KENYA: CASE OF KENYA PIPELINE COMPANY (KPC), ELDORET
Kipruto J. - Kenyatta University, School of Humanities and Social Sciences, Kenyatta University, Kenya
Minja D. - Kenyatta University, School of Humanities and Social Sciences, Kenyatta University, Kenya
ABSTRACT
Poor financial management and lack of good governance structures make it difficult for the parastatals to constantly underperform thus lagging the private sectors. Due to this, the services of these parastatals have been substandard and unreliable leading to lack of confidence by the public in them. The study aimed at evaluating the impact of practices in corporate governance on financial performance of parastatals in Kenya with specific regard to the Kenya Pipeline Company, KPC, Eldoret. Specifically, the study set to evaluate the impact of board independence and board members knowledge on financial performance of the board of Kenya Pipeline Company. The study employed descriptive survey design and targeted a participant population of 178 employees who comprised of employees from all levels of management within the company. Using the statistical formula described by Yamane (1967), a sample size of 123 respondents was reached and selected from the population. The study applied a simple random probability sampling. Both primary and secondary data collection methodologies were used for data collection. Research instruments was validated by the university supervisors piloting 2 state corporate states are used to test the reliability of the questionnaires. A correction coefficient of <0.7 was within acceptable limit. In data analysis, a descriptive statistic was used.
