Transparency and Board Responsibility of Corporate Governance on the Performance of State Corporations in Kenya; A Case Study of Kenya Literature Bureau

Abstract

Education is vital for sustainable development, aligning with UN Sustainable Development Goal 4 and Kenya's Vision 2030, and the Kenya Literature Bureau (KLB) supports this mission by publishing educational materials. Despite its crucial role, the organization faces significant internal challenges in leadership and organizational structure. The general objective of this study is to evaluate the effect of corporate governance practices on the organizational performance of the Kenya Literature Bureau. The study specifically evaluated how transparency and board responsibility influenced organizational performance, utilizing Agency Theory as the primary framework, supplemented by Stakeholder Theory and the Resource-Based View. A descriptive research design was employed, targeting all 240 staff members at KLB, with a sample size of 150 selected through proportionate and random sampling methods. Data collection involved structured questionnaires, and a pilot study was conducted to refine these tools. Quantitative data analysis utilized descriptive and inferential statistics using SPSS version 28 including correlations and regression analyses, to explore relationships between variables. The analysis results reveals a strong evidence that corporate governance practices, specifically transparency and board responsibility, have a statistically significant and positive impact on the organizational performance of the Kenya Literature Bureau. The strong correlation coefficient (R = .748) indicates a robust positive relationship, while the coefficient of determination (R² = .560) reveals that these two governance factors explain approximately 56% of the variation in organizational performance, demonstrating substantial explanatory power. Based on the findings that transparency and board responsibility significantly influence the organizational performance of the Kenya Literature Bureau, it is recommended that the institution prioritize strengthening these key aspects of corporate governance. Management should implement clear policies and practices that enhance transparency by promoting open communication, timely disclosure of information, and stakeholder engagement to build trust and accountability.