The relationship between the Board of Director’s Composition and Performance of Commercial State Corporations in Kenya

The aim of the study was to assess the relationship between the board of directors’ composition and performance of Commercial State Corporation in Kenya. The target population constituted 29 Commercial State Corporations in Kenya. The objective was to establish the relationship between the size, gender and representation of the board members and how these variables impact on performance.
A sample of 133 respondents was selected using stratified random sampling but only 100 respondents were interviewed using the questionnaire method.
The major findings from the study were that there is a relationship between the composition of the board of directors and the performance of Commercial State Corporations in Kenya.
The study further recommended that in the board composition factor framework, state corporation size, gender, and independence be considered in the appointment of directors of BODs of CSCs in Kenya. Specifically, the constitutional requirement of 30 percent presence of either gender be met, a board size of say 10-12 directors and independence of the parent ministry in appointment.