| dc.description.abstract | The Co-operative Movement in Africa has faced numerous operational challenges in
the past decade especially due to sudden Government withdrawal from its previous
extensive support to rural sector and also due to the negative effects of economic
liberalization in the country.
The main objectives of this study was to identify the nature of corporate governance
practices adopted by cooperatives as well as identifying challenges faced by cooperatives
in the implementation of these corporate governance practices highly
recommended by the government.
This study adopted a descriptive design where the population of interest was the entire
10,800 cooperatives in Nairobi according to cooperative directory 2008. Stratified
random sampling was used to select the respondents. Primary data was collected
using a questionnaire. Collected data was first edited for completeness and
consistency. Statistical package for social sciences (SPSS) was used to analyze it.
From the study the researcher found out that, cases of corruption, mismanagement and
misappropriation of funds by elected officials were few and the organization did not
receive so much political pressure from external forces to implement activities that
countered the management ethics and standards in the year 2007. In addition, delay in
giving loans was the major complain by the cooperative members and majority of the
staff earned on average an equivalent salary as compared to other financial
institutions.
The researcher recommends that corporate governance practices by cooperatives in
Nairobi should be maintained and improved to cover all the functions of the
cooperatives since from the findings the researcher found out that its introduction led
to the improvement of the running of the cooperative societies. Likewise, the
management should enlighten their members on the benefits of corporate governance
practices so that there won’t be any failure during its implementation | en |
