The relationship between corporate governance and customer satisfaction among commercial banks in Kenya
Corporate Governance is all about making sure that decision are made effectively. This impetus towards corporate governance has been due to many factors. For instance, it matters for shareholders as it is a shield against abuse of directors while improving access to capital for the company itself and instilling financial stability in the market. The intent of the research was to assess the relationship between corporate governance and customer satisfaction. The research highlights the corporate governance practices in banks and how that affects customer satisfaction with the operations of Banks in Kenya. There are a total of 44 banks in Kenya. Out of the 44 banks, the researcher targeted the most commonly used banks in Kenya. A total of 7 banks including National bank, Equity Bank, Family Bank, Barclays Bank, Stanch art Bank, Cooperative bank and Kenya Commercial Bank. One branch of each of the seven banks was chosen and included in the targeted branch population. The study specifically targeted branch managers of the different bank branches and customers in the different branches. Systematic sampling was used in identifying customers to include in the sample. The administered a structured questionnaires to 10 customers in each of the banks. The findings have revealed that the corporate structures and practices in Kenyan banks are well constituted and professional. The constituting of corporate boards is done through the involvement of all stakeholder or at least the key stakeholders. Moreover, academic standard are applied leading to the constitution of a qualified and gender sensitive board. The board of governors in the banks are responsive because they are involved in every major decision making process and are expected to provide leadership to the bank towards achieving strategic objectives. The boards exercised pragmatic transparency leading to information being released in a way that generates customer trust and safeguard the bank’s image. The study established that the banks demonstrate physically that they offer quality services. However, there is a problem when it comes to sitting and waiting arrangements in the banks. The sitting arrangement and waiting arrangement in most banks in Kenya is not conducive. The banks perform poorly on reliability because majority of the customers feel the banks do not provide their services in a timely manner. The customers have trust in the problem solving practices in banks. However, the customers believe the process takes long and employees in their banks did not prevent long waiting.