Savings and Credit Cooperative Societies (SACCOs) in Kenya has not been able to realize their full potential in terms of performance over the past several years. Both the capital adequacy of the company, which fell from 74.60% in 2021 to 72.26% in 2022, and the quality of assets, which declined from 109.48% in 2020 to 74.07% in 2022, indicated this sub-optimal performance. Savings and credit cooperative societies in Kenya have recently adopted corporate governance principles to address performance challenges. This study examined the impact of governance practices on SACCOs in Nairobi County, focusing on the relationship between governance and performance to improve efficiency and profitability. The research analyzed SACCO performance through board diversity, independence, meetings, and transparency. It incorporated theoretical frameworks, including the balanced scorecard, resource dependency, stakeholder, and agency theories, ensuring a comprehensive analysis. Using a descriptive research design, questionnaires collected primary data from 525 SACCO members. A sample size of 228, determined via Yamane Taro's 1967 formula, included directors, financial managers, and HR managers. Pilot tests assessed validity and reliability, using Cronbach's Alpha for reliability and concept, face, and content validity. Quantitative analysis applied descriptive and inferential statistics, including Pearson's correlation and regression models, with findings presented via SPSS version 28, tables, graphs, and distribution plots. The study confirmed that board diversity, independence, meeting frequency, and transparency significantly enhance SACCO performance. Strong governance frameworks drive better financial outcomes, emphasizing that board autonomy in decision-making is key to organizational effectiveness. The study concluded that regular meetings facilitate effective communication and coordination between management and the board, enabling timely decision-making and fostering a collaborative environment. The study also concluded that regular updates on financial performance and accessible financial statements enhance stakeholder trust and engagement. The study recommends regular assessments of board composition in order to identify areas for improvement and to foster a more collaborative environment. SACCOs should also implement regular independent audits and ensure that the findings are transparently communicated to all stakeholders, thereby fostering a culture of accountability and improvement. Keywords: Corporate Governance, Performance, SACCOs, Nairobi City County, Kenya
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