Impact of Adoption of corporate governance on financial management in preschools in Kayole, Nairobi County Kenya

Abstract

This study aimed at assessing the practice of corporate governance in financial management in preschools. In addition, it was also aimed at finding out the underlying reasons of most frequently stated issues of implementation from the corporate governance practice perspectives. The study assessed the adoption of corporate governance on financial management in preschools in Kayole Nairobi County. In this study, both quantitative and qualitative data were collected. The quantitative data was gathered through questionnaires from 20 preschool administrators teaching in public and private kindergartens in Nairobi. The qualitative data was gathered through interviews with a group of participants selected from the 20 schools. Frequency tables and charts were used to present the result of the study. In this study the researcher used survey method and barrier analysis survey. The design is meant to enable the researcher to draw a clear conclusion of the relationship between the variables. A framework on behavior change used to design the questionnaires was a determinant of the course of action to implement desired behavior. The results indicated that the most frequently reported issues by the participants were the problems related to evaluation and physical facilities followed by the ones related to skills and knowledge of undertaking corporate governance in financial management. In the study, one of the most stated problem that preschool administrators face in the financial management of their schools was implementation and evaluation. The administrators added that they easily get support from their seniors on how to practice corporate governance in financial management. They also noted that the practice is highly approved by most people. Though more administrators were able to practice corporate governance, some were not putting the knowledge and skills into practice due to various challenges as discussed in this study. Administrators faced a challenge of addressing demand for information. Supply of accounting information was also a challenge as well as monitoring costs. The study recommends that Ministry of Education in cooperation should strive to employ more trained teachers, a joint venture between the regulators and the government to improve the situation through revision of resource allocation criterion to schools to put into consideration the special needs of the disadvantaged schools to address the problem of inequality in the education sector in the area and school administrators to organize for stock taking events for the stakeholders to establish the status of the schools and act proactively towards addressing the problems that the schools face. The findings also showed that school administrators should organize for stock taking events for the stakeholders to establish the status of the schools. It also showed that ministry of education should ensure every preschool is fully furnished and equipped with necessary facilities. Suggestions for further studies included; i) Study to assess the level at which corporate governance is practiced in preschools in regard to financial management. ii) Challenges faced by preschool teachers in the curriculum implementation.