Implementation of Corporate Governance in Selected Public Universities in Kenya in the Context of the Universities Act, 2012

Abstract

To govern public universities, the Government has enacted the Universities Act, which came into force in December 2012. In the discharge of their functions under the Act, public universities are required to embrace corporate governance ideals as contained in the Act. Despite this, the enforcement and implementation of these provisions on corporate governance has not been wholly effective because public universities continue encountering challenges. The study sought to establish the implementation of corporate governance practices in public universities in Kenya in the context of the Universities Act with a view of making necessary recommendations for legal reform. Specifically, the study sought to establish to what extent inclusive governance systems and practices have been implemented in the public universities; the extent to which efficient and effective systems and practices have been applied; how transparent systems and governance have been embraced and to what extent systems for enhancing sustainability have been put into operation.The study employed a cross-sectional research design which entailed a desk review and a field study. The desk work entailed the review of statutes, government reports, journals, periodicals, books and internet searches as secondary sources of data. The field work entailed the collection of primary data from respondents by way of administration of research instruments. The study considered the top management staff in the public universities within the central region of the Republic of Kenya. The top management considered were the deputy vice chancellors in charge of planning, registrars, the finance officers and the legal officers. The study found out that: employment opportunities had been offered to the local communities and people from communities which were not from the localities where the universities were situated were left out. Persons with physical challenges were provided with amenities like ramps, sanitation facilities and special parking slots but only with a bias for the new buildings. The persons sitting in the university councils largely merited the positions by virtue of their academic qualifications. Presence of multiple agents derailed the operations of the institutions owing to numerous approvals that were required before the budgetary appropriations were implemented thereby occasioning operational inefficiency. The universities had strived to ensure transparency in the budget making process. Ability to conform to the Public Finance Management Act, 2012 was evident though the universities failed to publish their audited accounts. There were inadequacies in the procurement process in the institutions which was confirmed by the numerous complaints that had been lodged by aggrieved suppliers and contractors with the public procurement oversight authority. The research project recommends that the public universities should be forced to implement inclusive governance systems through provisions that make it mandatory for them to embrace participatory processes. The Commission for University Education should put in place provisions to audit the conformance to the institutional service charters, enforce stringent and deterrent measures to deter tribalism and nepotism. It should also come up with provisions which make it mandatory for the public universities to put in place the requisite infrastructure and comply with the Universities Act as a precondition for licensing.