CORPORATE GOVERNANCE AND PERFORMANCE OF INSURANCE COMPANIES IN NAIROBI CITY COUNTY, KENYA

Duke Masabe Nyagwoka, Dr. Yusuf Muchelule

Abstract


The main objective of this study is to assess the relationship between corporate governance on performance of insurance companies in Nairobi City County, Kenya. Specifically, the study sought to; explore the effect of independence of directorship on performance of insurance companies in Nairobi City County, Kenya, and to determine the effect of organizational structure on performance of insurance companies in Nairobi City County, Kenya. The study adopted descriptive research design. The target population of this research comprised of 168 management employees from 56 insurance companies in Kenya. The sample size was 118 respondents. Data collection was done using self-administered questionnaires. Collected data was quantitative and was analyzed using Statistical Package for Social Sciences (SPSS) version 28. Descriptive statistics such as mean, frequencies and standard deviation was used to analyze the data. The study also computed the correlation and regression analysis to test the relationship between the study variables. The findings were presented in tables and figures. The study concludes that independence of directors has a positive and significant effect on performance of insurance companies in Nairobi City County, Kenya. Further, the study concludes that organizational structure has a positive and significant effect on performance of insurance companies in Nairobi City County, Kenya. From the findings, this study recommends that the management of insurance companies in Nairobi City County should continue embracing independence of directors to as to facilitate organization performance.

Key Words: Corporate governance, Independence of directorship, Organizational structure, Performance, Insurance companies

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References


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