The Effects of corporate governance on the performance of universities in Kenya

Abstract

This research looks at the connection between corporate governance and the performance of Universities in Kenya. Kenyan universities have been facing problems from mismanagement to financial crises over the years and have been subject to look if corporate governance is a factor affecting the universities. These challenges have affected the performance of universities in the country which has resulted in strikes within the country. Five variables have been put into practice to try to explain how corporate governance affects the performance of universities in Kenya. These variables have been explained in terms of objectives in the study and either of the objectives has a positive or negative correlation to the financial performance. Board size, board composition, frequency of board meetings, qualification of the board members and the experience possessed by the board members are the objectives explained in the study and are linked to university performance in Kenya. Descriptive research design has been applied in the study. The study puts into practice multiple regression analyses among the dependent variable and the independent variables. The findings from the data collected reflect that board composition, board qualification, frequency of board meetings and board members' experience do not affect the performance of the universities in Kenya. Board size has a direct correlation with the performance of the universities hence affecting the performance of the universities through the excellence in rankings. Board size should be maximized used in the decision making of the university programs to increase the performance of the universities.