A survey of corporate governance practices by Savings and Credit Co-operative Societies in Kakamega municipality

Abstract

There is limited published research on corporate governance practice by SACCOs in Kenya. Most SACCOS in Kenya have suffered loss due to poor management, nepotism and embezzlement of funds. The role of cooperative societies in the economy need not be overemphasized. Cooperative societies are important vehicles for economic growth and development globally. National economies have benefited from well-governed cooperatives. The converse is true. Good corporate governance in cooperatives would lead to the realization of objectives of the cooperative movement, which is creation of wealth for sustained economic growth and development. However, despite the great potential of cooperative societies as agents for national development in the country, they have performed poorly. This poor performance is attributed in a nutshell, to poor corporate governance practices by the management committees or other bodies entrusted with the responsibility of governing the cooperative societies. There is therefore need to get the cooperative sector back to sustainable prosperity.