Corporate Governance and Performance of National Government - Constituencies Development Fund in Kiambu County
Date
2017-10
Authors
Waiyaki, Isabel N
Journal Title
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Volume Title
Publisher
Pan Africa Christian University
Abstract
The introduction of National–Government Constituencies Development Fund (NG-CDF) had the aim of devolving resources to the remote areas of Kenya with an aim of eradicating poverty. There has been increased allocation of funds to the NG-CDFs. However, even with increased allocation, the performance of the NG-CDF has been below par with poor provision of public services in many NG-CDFs. There is a general perception by the public that NG-CDF institutions are not transparent, open, accountable and fair. There have also been instances of inability to account for funds in some constituencies. Despite this problem of poor performance and poor governance aspects, there’s no indepth study on the link between corporate governance practices and the performance of NG-CDF especially in Kiambu County. The study thus aimed at addressing this problem and filling this research gap. The objective was to determine the effect of corporate governance on the performance of the NG-CDF in Kiambu County. Secondary data, descriptive and explanatory research designs were used. The data was collected using a questionnaire with the fund account managers and/or NG-CDF board chairmen as the targeted respondents. The 12 NG-CDF institutions composed the population. Data was analysed using STATA statistical package and the model estimated was the random effects. The results indicated that accountability was positively related with NG-CDFs’ performance. Board effectiveness as represented by the board size was negatively related to the performance of the NG-CDF. The study recommends that NG-CDF national board and the NG-CDF institutions should ensure appropriate and timely auditing and realistic plans for the whole process starting with disbursement of funds. They also ought to determine reasonable low number of members in the board.
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Keywords
Performance of National Government,Constituencies Development Fund
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