Influence of Corporate Governance on Performance of Deposit Taking Saccos in Kenya

The Kenyan Sacco Sub Sector has witnessed rapid growth, contributing to financial access reaching 13% of the population. Apart from commercial banking sector, Deposit Taking Saccos remain single largest formal credit service provider household economies in Kenya. This is attributed fact that members’ savings can be treated as collateral for borrowing at same time earn interest surplus made by SACCO. Despite their contribution, are riddled with poor governance issues resulting gross mismanagement, scandals, management problems which led low performance and collapse some. Guidelines on have been enacted an approach improve Saccos. increasing importance corporate higher firm was basis this study. research objective investigate influence SACCOs scope study licensed Kenya were operational between 2014 2018. anchored Resource Dependence Theory, Agency Theory Upper Echelons Theory. guided pragmatic paradigm. Descriptive cross-sectional survey correlational designs adopted. A sample size 108 drawn a target population 150. Proportionate stratified simple random sampling technique used select size. semi structured questionnaire collect primary data CEOs, Managers employees. Secondary collection sheet secondary published annual reports. pilot covered 11 test validity reliability. Out questionnaires administered, 105 dully filled returned representing response rate 97.2% percent. Data analyzed using descriptive statistics, Pearson’s correlation, hypotheses testing regression analysis. findings suggest overall correlation coefficient Corporate Governance deposit taking not significant 0.225 P- value 0.201>0.05, hence failing reject null hypothesis. concludes may ensure desired performance. However, recommends adoption practices mechanism protect owners’ interests. Limitations included contingencies, choice variable measurement scale. Areas further studies suggested conducting other contexts corroborate these consideration dimensions Keywords: Governance, Performance, DOI: 10.7176/EJBM/14-8-10 Publication date: April 30 th 2022