Corporate governance practice in the public sector; the case of national hospital insurance fund (NHIF)
Abstract
In the past corporate governance has been emphasized in the private sector. However,
corporate governance at all levels is increasingly being seen as the most important factor
for the success of organizations in both the private and public sector. NHIF is one of the
organizations in the public sector with the key responsibility of providing affordable and
accessible healthcare to all Kenyans.
NHIF is faced by the challenge of good corporate governance practice. This was evident
during a launch by KACC of the Anti-graft plan (Daily Nation, July 6, 2006). During this
launch KACC released its first National Corruption Perception Survey in which NHIF
was mentioned and rated No. 18. The purpose of the study was to determine what
corporate governance structure NHIF has put in place.
The study applied a descriptive research design approach. The study targeted all the
employees drawn from the entire branch network of NHIF. A sample size of 151
respondents was selected from the target population through stratified and simple random
sampling techniques. The study used questionnaires to collect primary data. Descriptive
statistics and factor analysis techniques were the principal data analysis techniques. The
results are presented using tables and charts.
The study established that NHIF has the necessary corporate governance structures in
place i.e Board of directors, Audit Committees, Code of Conduct and a Tendering
Committee. However, it was also noted that NHIF does not have a Directors Nomination
and compensation Committee not to mention there is political influence in the decision making
process.
Citation
Masters of business administrationSponsorhip
University of NairobiPublisher
school of Business, University of Nairobi