BOARD INDEPENDENCE AND FINANCIAL STABILITY OF SELECTED MICROFINANCE BANKS IN KENYA

Phineas Koome Mbaya, Ambrose Jagongo, Gerald Atheru

Abstract: This study evaluated the effect of board independence on financial stability of microfinance banks in Kenya. The 14 microfinance banks in Kenya constitute the target population and subsequently sample size based on a census approach. Utilizing quantitative methods, descriptive statistics, and panel data regression analysis, data was analyzed and summarized; result was based on panel data regression analysis. Board independence had a negative and significant effect on financial stability of microfinance banks in Kenya. The study recommends that the central bank of Kenya should develop and enforce specific guidelines or regulations that mandate a minimum level of board independence for microfinance banks.

Keywords: Board Independence, Financial Stability, Agency Theory and Financial Intermediation Theory.

Title: BOARD INDEPENDENCE AND FINANCIAL STABILITY OF SELECTED MICROFINANCE BANKS IN KENYA

Author: Phineas Koome Mbaya, Ambrose Jagongo, Gerald Atheru

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Vol. 12, Issue 1, April 2024 - September 2024

Page No: 185-190

Research Publish Journals

Website: www.researchpublish.com

Published Date: 17-August-2024

DOI: https://doi.org/10.5281/zenodo.13335513

Vol. 12, Issue 1, April 2024 - September 2024

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BOARD INDEPENDENCE AND FINANCIAL STABILITY OF SELECTED MICROFINANCE BANKS IN KENYA by Phineas Koome Mbaya, Ambrose Jagongo, Gerald Atheru