Corporate Governance Practices by Major Commercial Banks in Kenya
Abstract
The banking industry in Kenya has not received due attention as regards corporate
governance, and how they measure with established standards. This research project sought
to fill this void by achieving two objectives; establish the corporate governance practices that
are employed by the major commercial banks in Kenya, and to expose differences between
these practices and established best practices. This study used both primary and secondary
data to achieve these objectives. Primary data was obtained directly from top management in
banks through questionnaire administration that had both closed and open ended questions
that provided this research with both qualitative and qualitative data. Secondary data was
especially used to establish best practices. The respondents were six top managers of the six
major commercial banks in the country that comprise tier one status in the market. Findings
indicate that Kenya has made great strides in corporate governance practices in the banking
industry through benchmarking and to some extent regulation. The study however exposed
shortfalls in representation in boards of management and certain aspects of regulation such as
remuneration. The study recommends sound regulatory governance as regards representation.
The quality of supervision and prudential guidelines need to be carefully crafted.
Citation
Master Of Business Administration (MBA) Degree, School Of Business, University Of Nairobi, 2013Publisher
University of Nairobi,