CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN MACHAKOS COUNTY, KENYA

Abstract

Purpose: the purpose of the research was to examine how the services provided by commercial banks in the country affect the customers' satisfaction, regulatory framework compliance, employee motivation and retention, and overall transparency and accountability.

Methodology: Data was gathered using surveys utilizing a descriptive research methodology. Commercial banks in Machakos County were the focus of this research. Because of its central location within the metro area and its excellent infrastructure, Machakos County was chosen due to the region's tremendous economic potential. Machakos county has a total of 26 commercial banks spread across its 9 sub counties and were all involved in the study. The data collection tool was piloted in Makueni County. Both the correlation and regression results were used to establish whether any form of influence between transparency and accountability, employee motivation and retention, regulatory framework compliance, customer satisfaction and performance of commercial banks in Kenya.

Findings: The study found out that there exists a positive relationship between the specific aspects of corporate governance under study and the financial performance of commercial banks. these findings have also been related to the findings of other previous researches.

Recommendations: The research recommends that to ensure there is sufficient Compliance to Regulatory Framework the management of the commercial banks, the legislature and the central bank which is the supervising authority needs to put in place policies to ensure the bank is compliant to the provisions