Corporate Governance and Financial Performance of Public Schools in Kenya

Abstract

The advent of increased need for financial accountability in the public sector in Kenya has placed public school management and boards on the spotlight of scrutiny. Corporate governance has been embraced by the schools as a key antecedent to financial performance. In the eve of this metamorphosis, this study sought to establish the predictive power of four corporate governance principles; board composition, available board skills, application of corporate governance principles and separation of duties on a schools financial performance. A stratified sampling technique was employed in drawing 153 respondents on the basis of being; a head teacher, board of governor, parents-teachers association member, district education officer or a parent with a child going to a public secondary school. A descriptive review of 49 public schools in Kenya was performed and the resulting data subjected to a multivariate regression analysis. It was established that the four predictors had a significant effect on a schools financial performance. The skills of the board members had the largest impact factor and to enhance accountability, large board sizes are recommended in public schools.