Corporate governance: the practices of the board of directors in Kenya roads board
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Date
2006Author
Gathika, Lucy Kabura
Type
ThesisLanguage
enMetadata
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Good Corporate Governance is the word on the lips of most successful leaders. The world
focus has turned to the management of organizations and particularly to the boards of
directors. This is because, owners of organizations want to get value from their
investments, the society wants services from corporations and the employees wanting
higher salaries. This can only be guaranteed by appropriate utilization of resources. The
board of directors is a key structure of corporate governance.
This study is a case study of Kenya Roads Board (KRB). The board of directors of KRB
is mandated to oversee the road network in Kenya and manages the Road Maintenance
Levy Fund (RMLF). The effectiveness of an organization is measured by the corporate
governance practices that it has adopted. The study seeks to determine and assess the
corporate governance practices of the board of directors of KRB. Data for the study was
collected from secondary and primary sources. Primary data was collected through
personal interviews. Content analysis method was used to analyze the data collected.
The study established that the board of directors in KRB had adopted practices of good
corporate governance. The board of directors are involved in setting the mission and
objectives of the organization and overall strategic planning, allocate and monitor
-.. utilization of resources, have put in place internal controls, appoint and determine the
remuneration of the senior managers as well as regu..larly monitor their performance, hold
regular board meetings, report to stakeholders and are generally aware of the risk areas
facing the organization. However succession planning for the directors and the semor
managers was minimal as well as' involvement in social responsibility activities.
Though some practices of good corporate governance were found in KRB there is need
for a more structured mechanism of handling various issues. Disclosures and dialogue
with the stakeholders needs to be enhanced and monitoring of funds released to external
bodies tightened. The relationship between the management and the board of directors
needs to be continuously monitored to ensure that it remained cordial to realize the
objectives of the organization.
Citation
A management research project submitted in partia Fulfillment of the requirements of master of Business administration (mba), school of business, University of NairobiPublisher
Business Administration and planning