DOI: 10.36347/sjebm.2017.v04i03.009

Pages: 195-212

The study sought to find out the relationship between corporate governance practices and financial performance of Deposit taking Saccos in Western Kenya. The objectives that guided the study were CEO duality, Board size, board independence, and disclosure levels. The study population was the deposit taking Saccos in Western Kenya. Western Kenya was taken to be the counties comprising of Migori, Homabay, Kisii, Nyamira, Kisumu, Siaya, Busia, Kakamega, Vihiga and Bungoma. The study employed cross-sectional survey design. The data was collected by use of questionnaires, and secondary data analysis. The data was analyzed using S.P.S.S (Statistical Package for Social Sciences) and thereafter presented by use of statistical means. The study found out that all the deposit taking Saccos in Western Kenya had a clear separation of authority with respect to the executive function. CEOs were therefore, involved in the day-to-day management of the firms‟ operations while the boards were tasked with policy formulation and decision-making. The study also found out that shareholders elect and remove the members of the board with a mean of 4.253 and standard deviation of .874. The study shows that respondents were for the idea that Directors are required to declare their interests in entities doing business with the organization, the books of accounts are prepared in the organization, the organization employs external auditors and that the organization restricts insider trading. The organization carries out due diligence had a mean of 3.968 and standard deviation of .3964.