Corporate governance practice in the public sector; the case of national hospital insurance fund (NHIF)

Abstract

In the past corporate governance has been emphasized in the private sector. However, corporate governance at all levels is increasingly being seen as the most important factor for the success of organizations in both the private and public sector. NHIF is one of the organizations in the public sector with the key responsibility of providing affordable and accessible healthcare to all Kenyans. NHIF is faced by the challenge of good corporate governance practice. This was evident during a launch by KACC of the Anti-graft plan (Daily Nation, July 6, 2006). During this launch KACC released its first National Corruption Perception Survey in which NHIF was mentioned and rated No. 18. The purpose of the study was to determine what corporate governance structure NHIF has put in place. The study applied a descriptive research design approach. The study targeted all the employees drawn from the entire branch network of NHIF. A sample size of 151 respondents was selected from the target population through stratified and simple random sampling techniques. The study used questionnaires to collect primary data. Descriptive statistics and factor analysis techniques were the principal data analysis techniques. The results are presented using tables and charts. The study established that NHIF has the necessary corporate governance structures in place i.e Board of directors, Audit Committees, Code of Conduct and a Tendering Committee. However, it was also noted that NHIF does not have a Directors Nomination and compensation Committee not to mention there is political influence in the decision making process.