Effective corporate governance is essential for fostering sustainable, profitable, and socially responsible enterprises. It promotes transparency, accountability, and ethical leadership, enabling organizations to respond effectively to evolving societal needs. Sound governance also upholds democratic values, inclusive decision-making, and legitimate stakeholder representation, while safeguarding the interests of both shareholders and the general public. This study examined the influence of board diversity on the operational efficiency in public utilities, aiming to bridge knowledge gaps and enrich the existing literature on corporate governance. Specifically, it explored how various board characteristics impact service delivery outcomes. Adopting a case study approach and a descriptive research design, the study employed a stratified sampling technique. The target population comprised management staff from a water and sewerage company in Murang’a, Central Kenya. Findings revealed a statistically significant and positive relationship between board diversity and the operational efficiency. The study concluded that board diversity is a key driver of effective governance and enhanced organizational performance; and recommended the enforcement of policies to institutionalize board diversity across all public utility enterprises.