EFFECT OF BOARD OF DIRECTORS’ INDEPENDENCE ON GROWTH OF TEACHERS’ SAVINGS AND CREDIT CO-OPERATIVE SOCIETIES IN WESTERN KENYA
Abstract
This study sought to determine the effect of board of directors’ independence on growth of teachers’ SACCOs in Western Kenya. The study was grounded on the Stakeholder Theory. The study adopted a descriptive and explanatory research design. The target population study comprised of all the SACCO board members including supervisory committee members and the top senior management staff in the entire five teachers’ based SACCO Societies found in the four counties that formed the Western Kenya. The study used primary data that was collected using structured questionnaire presented in Likert scale. The data was analyzed using percentages, mean and standard deviation. Correlation and regression analysis was used. The tables and figures were used to present the study findings. The inferential findings revealed that the relationship between board independence and growth of teachers’ SACCOs in Western Kenya was positive and significant. The study findings recommended that that in order for teachers’ SACCOs in Western Kenya to realize better growth in gross income, the teacher SACCOs should consider adopting board independence practices such as allowing the board members to monitor the financial performance of the SACCOs, also allowing the board to contribute to the strategic direction of the SACCO, and ensure that the board members have freedom to determine the financial status of the SACCO.
Key Words: Board Independence, Teachers SACCOs
CITATION: Mkabane, A. I., Okello, B., & Juma, D. (2020). Effect of board of directors’ independence on growth of teachers’ savings and credit co-operative societies in western Kenya. The Strategic Journal of Business & Change Management, 7(2), 327 – 340.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i2.1632
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