EFFECT OF CORPORATE GOVERNANCE ON SERVICE DELIVERY: A CASE STUDY OF MURANG'A WATER AND SANITATION COMPANY
Abstract
Corporate governance has a long history of positively impacting society by generating jobs and solutions to evolving problems. It ensures honesty, integrity, and accountability in companies. Prudent corporate governance takes an all-encompassing approach focused on democratic values, legitimate representation, and involvement while respecting and safeguarding the interests of its owners. This study adopted a case study strategy to investigate the effect of corporate governance on the service delivery of Murang’a Water and Sewerage Company (MUWASCO) in Kenya. Specifically, the study focused on three main objectives, namely: to determine the effect of board diversity on the delivery of water services in MUWASCO, to evaluate the effect of executive officer (CEO) attributes on water services delivery in MUWASCO, and to examine how the audit committees affect water services delivery in MUWASCO. Primary data was the core data source collected through questionnaires and Focus Group Discussions. This study contributes to the studies about water companies and board diversity, CEO attributes and audit committees and how they all relate to water governance and service delivery. The study used a two-stage cluster sampling method where the population was first divided into customers and corporate employees, and then a sample was selected from each group. The study used a quantitative research design aided by SPSS version 26. The research findings were presented using tables, charts, and graphs. On the first objective, the results showed that board diversity and service delivery have a positive linear association. Additionally, the data showed a statistically significant association between board diversity and service delivery. Results of the second objective indicated that CEO attributes and service delivery in MUWASCO were positively correlated and showed a statistically significant association between CEO attributes and service delivery. Lastly, the audit committee procedures and service delivery at MUWASCO were positively correlated. There was also a statistically significant association between the audit committee and service delivery. Based on the study findings, the research concluded that corporate governance, with the variables of board diversity, CEO attributes, and effective audit committees, has a positive effect on service delivery in MUWASCO. Board diversity, CEO attributes and effective audit committees therefore contribute to improved service delivery in water companies and in particular, MUWASCO. Organizations should embrace these factors for improved service delivery. However, the study recommends that similar studies be conducted across other water companies and public service delivery sectors for comparative research.