CORPORATE GOVERNANCE PRACTICES AND PERFORMANCE OF INDEPENDENT CONSTITUTIONAL COMMISSIONS IN NAIROBI CITY COUNTY, KENYA
CORPORATE GOVERNANCE PRACTICES AND PERFORMANCE OF INDEPENDENT CONSTITUTIONAL COMMISSIONS IN NAIROBI CITY COUNTY, KENYA
James Githu - Student, Master in Leadership and Governance, Kenyatta University, Kenya
David Minja - Lecturer, Department of Public Policy and Administration, Kenyatta University, Kenya
ABSTRACT
The primary duties of constitutional commissions involve safeguarding the people's sovereignty, ensuring that all government entities adhere to democratic values and principles, and fostering constitutional governance. Nevertheless, most of these commissions have fallen short of fulfilling their responsibilities. In the absence of significant independence, constitutional commissions and independent bodies are unable to hold either the legislature or the administration accountable, nor can they facilitate transparent and democratic governance. Viewing these institutions as part of the government hampers their ability to function freely, without fear, favoritism, or bias, which is essential for them to effectively carry out their roles. This challenge arises from the fact that these institutions are designed to act against those in power. Robust corporate governance practices play a significant role in the effective and efficient administration of state-owned enterprises. Since gaining independence, the degree of accountability in the management of these corporations has persistently diminished, even with the presence of numerous oversight mechanisms such as legal regulations, ethical standards, policies, and codes of conduct designed to offer a clear guide for the successful operation of state corporations. The research aimed to explore how corporate governance practices affect the performance of independent constitutional commissions in Nairobi City County, Kenya. The objectives were to examine the effect of accountability practices and assessing the influence of transparency practices, on the performance of these commissions. The research was guided by agency theory, stakeholder theory, stewardship theory, and moral hazard theory. A descriptive research design was utilized for the investigation. A total of 1,426 workers from the fourteen independent commissioners in Nairobi County, Kenya, made up the target population. A sample of 303 personnel, including non-management, lower management, middle management, and top management staff from the commissions, was obtained by applying the Fisher, Liang, and Stoeckel (1983) formula to estimate the sample size. A semi-structured questionnaire with both closed-ended and open-ended questions was utilized to gather data. Both descriptive and inferential statistics were used in the analysis; multiple regression analyses were used for inferential statistics, while means and standard deviations were utilized for descriptive statistics. Tables and figures were utilized to display the data analysis results. The findings indicated a strong relationship between the identified predictors accountability practices, transparency practices, board responsibility, and risk management practices and the organizational performance of independent constitutional commissions in Nairobi City County, Kenya, as evidenced by an R value of 0.894. Additionally, an R-squared value of 0.799 suggested that 79.9% of the variability in organizational performance could be explained by these four governance practices. In conclusion, the study established that corporate governance practices have a significant impact on the performance of independent constitutional commissions in Nairobi City County, Kenya. It was recommended that the government prioritize the strengthening of corporate governance frameworks within these commissions. Given the positive correlation between governance practices and organizational performance, the government should implement clear guidelines regarding accountability, transparency. This may involve the creation of dedicated oversight bodies to ensure regular audits, performance evaluations, and adherence to governance standards across all commissions.
