Business , Economics & Management

Abstract

The deposit taking SACCOs in Nairobi County, Kenya are feeling the pressure to stay afloat financially as the members expect more, the regulations continue to pressurize and the competition in the financial frontiers. Such issues have increased the demand of powerful governance structures that can protect member funds, improve the efficiency of operations, and increase the long-term viability. The practices of corporate governance especially independence of the boards, gender diversity, audit committee effectiveness and the number of board meetings have become determinants of institutional sustainability. This study aims to determine how corporate governance practices contribute to the financial sustainability of deposit taking SACCOs in the Nairobi County Kenya. Particularly, it examines the effects of board independence, gender diversity, audit committee attributes, and board meeting frequency on the financial sustainability, in terms of Return on Assets (ROA). The study is founded on the Agency Theory, Stakeholder Theory, Stewardship Theory, and Resource Dependency Theory. It will use a casual research design research design, which will include all the all 48 SASRA licensed DT- SACCOs in Nairobi County by 2025 (SASRA, 2025). The unit of observation will be the chief executive officers (CEOs) or the peers in each SACCO whereas the unit of analysis will be the DT SACCOs as they will provide the information on the use of corporate governance practices and the effect that this has on the financial sustainability. A pilot study will be undertaken to test the instrument’s reliability and validity, with internal consistency measured using Cronbach’s alpha. Descriptive statistics (means and standard deviations) and inferential statistics, including multiple linear regression, will be used to analyze the data. The model’s overall significance will be tested via the F-test, and individual variable contributions assessed using t-tests. The results will offer practical intuitions for SACCO managers, policymakers, and researchers on strengthening governance to support SACCO sustainability in Kenya’s dynamic financial ecosystem.

Keywords

artificial intelligence, machine learning, procurement, supply chain management, supplier selection, spend analytics, natural language processing, digital procurement transformation

Author Biographies

Mike Smith - University of Nairobi - Kenya - wanjikunderitu13@gmail.com

Mercy Masika - University of Nairobi - Kenya - masika123@gmail.com

References

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