determinants of good governance in Nairobi county.

Background: Good governance in developing countries has been challenging to attain, especially in the public sector, based on the diverse system of government in place. Different approaches have been implemented by various governments aimed at controlling challenges in public sector governance. However, there are still challenges considering the approach to improve efficiency in good governance. The implementation of county governments in Kenya has adopted a decentralized form of government where the county government has been tasked with the provision of service to residents. Nairobi county is the most populous county, and the capital city of Kenya; hence is expected to become a model county in terms of good governance.

The purpose of the study: To identify determinants of good governance in Nairobi county.

Methodology: The study will adopt a cross-sectional research design where political and non-political leaders in the County of Nairobi be targeted. A stratified random sampling technique will be used to recruit 58 sample participants. The collected data by use of questionnaires will be cleaned, collated, and analyzed using both descriptive and inferential statistics. Correlation and multiple regression statistical tests will be conducted to obtain determinants of good governance in Nairobi County. The level of significance will be determined at 0.05.

CHAPTER ONE: INTRODUCTION

1.1.Background of the study

Governance is a fundamental procedure of leadership and implementation measures within a given context aimed at achieving a certain level of success based on defined goals. Governance is a major tool of economic-political as well as administrative aimed at managing affairs of a given organization as well as a government entity (Khanchel, 2007). Strategic planning and evidence-based policymaking have been the fundamental aspects that define good governance within public management. According to Organisation for Economic Co-operation and Development (2004), corporate governance is a system of structuring, operating as well as controlling an organization. When corporate governance is practiced under a well-outlined platform, it becomes easy to determine whether governance has a positive or negative influence.

According to Claessens Djankov and Lang (2008), in a study conducted in Thailand, the country has significantly struggled with governance issues have been unable to implement good governance practices in the public sector. The review further identifies that management practices are crucial in helping outline a strong system that can help improve the level of governance. Similarly, Chen et al. (2013) identified that resource availability help enhances the level of efficiency as well as significant change that promotes change. Decentralized governance and the use of professionals in different departments within the system have been essential in promoting change and the level of governance.  According to Eldon (2014), good corporate governance requires effective methods of internal control. In such a structure, citizens expect that county management is in a position to manage the risks the county faces and to put restrictions in place to deal with such threats.

Governance in developing countries, however, had been a significant challenge considering inadequate resources, poor ethics, and lack of political goodwill, which ave created a difficult context where it is possible to manage the needs of individuals within a given sector.  Nevertheless, there are African countries that have integrated decentralized systems of governance, which has been associated with improved commitment and service delivery. Ejuvbekpokpo and Esuike (2013), in a study conducted in Nigeria, found that despite the hostile and volatile nature of engagement, especially within the public sector. The government has sought to integrate a highly structured system targeting to improve the level of governance. Senegal has also adopted a decentralized system of governance within its public sector (Abidin and Ahmaa 2007).

In the Kenyan Context, County governments are systems of governance under the decentralized government. With devolution came decentralization of functions from the central government intending to attain accountability and equal distribution of resources. Top leadership in county governments are elective, meaning that holders of the office have to be voted in by their constituents (Waema, 2009). However, according to Mulili (2010), conflicts usually arise between attaining set motives in the provision of affordable services to the underprivileged and the rational expectation of making a return on invested capital. These objectives are within reach only through the establishment and enforcement of appropriate governance mechanisms. Therefore corporate governance in the county governments mitigates wastage, pilferage, technical abuses, and financial immodesty in the financial and administrative management. Atieno (2009) notes that corporate governance induces accountability, transparency, and financial probity in county management, thereby enhancing their integrity, restoring public and investors’ confidence, attaining policy objectives, and commercial imperatives of effectively utilized assets.

Kenya adopted decentralization after a new constitution was adopted in 2010. The country, which was once centralized, transformed into a decentralized one as power functions and services were transferred from the central government to the county governments. Since their formation, County Governments in Kenya have been deeply implicated mostly in fiscal problems emanating from poor corporate governance practices (Mwabu and Kibua 2008). As a result administration of most county governments is characterized by inefficiency and budgetary burdens, which more often than not justify their poor economic performance. Different counties in Kenya have adopted different corporate governance strategies that present the need to assess factors that are influencing the current governance. Nairobi County has been having challenges, especially with experts questioning the governance approach embraced by Nairobi County (Mang’unyi, 2011). Therefore it is essential to understand the underlying determinants of good governance to help in shaping change in governance and development of better approaches that promote quality governance.

1.2.Problem statement

Governance in the public sector has been a challenge in Kenya especially considering the lack of existing guidelines to help in promoting good governance and attain the identified goals (McCollum, Limato, Otiso, Theobald, & Taegtmeyer, 2018). The emergence of county governments has presented a different perspective to governance with county governments seeking to become models of good governance. The county governments offer the basis within which citizens within the country can access services. Corporate ethics, politics, and resource availability are vital measures that have been embraced in attempts by county governments to maintain good governance. The political regime is responsible for being the voice of the public through representation and participation in legislation in the county assemblies there are tendencies of forfeiting the oversight role and engagement in corruption-related issues which denies the service delivery.

Good governance has been adequately defined based on resource availability and the ability to control the negative influence of limited resources. Oudrat (2009) identified that human capital, financial capital, social, and intellectual capital have been integral in defining governance. The nature and direction of the relationship between resource availability have majorly been researched in the context of the private sector. Still, hardly much has been documented for the public sector more so in governance. This study, therefore, explored the relationship between the corporate governance practices in Nairobi county and the determinants of good governance based on resource availability, politics, and ethical values.

1.3.Objectives of the study

1.3.1.      Broad objective

To identify determinants of good governance  in the public sector in Nairobi county

1.3.2.      Specific objectives

1. To assess resource availability on good governance in Nairobi County
2. To evaluate the effect of ethics on good governance in Nairobi County

• To determine the effect of politics on good governance in Nairobi County

1. To evaluate the effect of corruption on good governance in Nairobi County

1.4.Research questions

1. What is the effect of resource availability on good governance in Nairobi County?
2. How do ethics affect good governance in Nairobi County?

• What is the effect of politics on good governance in Nairobi County?

1. What is the effect of corruption on good governance in Nairobi County?

1.5.The hypothesis of the study

H_1a:   There is no relationship between resource availability and good governance in

Nairobi County

H_1b:  There is no relationship between ethics and good governance in Nairobi County

H_1c:  There is no relationship between politics and good governance in Nairobi County

H_1d:  There is no relationship between corruption and good governance in Nairobi

County

1.6.Justification

Good governance in Kenya has been something difficult to achieve, considering the many existing challenges that are limiting efficiency. Nairobi County is the Capital City of Kenya and houses all headquarters of National government offices as well as the most populous in the country. The complex nature of the county as well as complex leadership approaches that have been integrated to improve efficiency in service delivery has presented a platform where it will be possible to understand major determinants of good governance as well as strategies that can help in promoting quality management of these underlying issues.

1.7.Limitations of the study

There is no specific governance approach that is being utilized by the Nairobi county, which makes it difficult to evaluate each of the factors that are being identified to help in streamlining the level of governance. At the same time, amid other issues that may affect the corporate government in the county set up, the study limits itself to the ethics, resource availability, politics, and corruption.

CHAPTER TWO: LITERATURE REVIEW

2.1.Introduction

This chapter reviews the literature relevant to corporate governance. The chapter reviews the origin of corporate governance, its principles and its application in the public sector. The chapter also looks at theories and models that underpin the corporate governance mechanisms. Finally, the chapter provides a conceptual framework of the issues under study.

2.2.Resource Availability and Corporate Governance

Resources with a governance system include different sources of capital which can help in emphasizing on the quality of governance.  Xing et al. (2015) identify that the existing governance and staffing structures have a strong influence on the ability to deliver planned services. According to Ulrich (2008), the right mix of resources enables public entities to act in response to the shifting legal and policy demands, together with the economic, political, and environmental changes as well as the associated risks. All these factors influence both the intended outcomes of the services and projects the public body needs to deliver.

Timea (2011) illustrates that good governance is defined by the existing resources and the relationships that are formed. The relationships and resources that are explained in a given system are diverse, taking into consideration capital and human resource throughout the public sector.  Additionally, Martinez (2011) stated that capital assets that belong to the entity itself or the society more should provide the required inputs aimed at achieving the public sector outcomes.

The communication approach that is adopted within a given sector defines the level of interaction and the ability to make informed decisions. Kajola (2008) identifies that manufactured and intellectual capital and information technology present a well-defined system that can help understand the existing needs and implement strategies that promote change. Decision making is an important part of good governance. Leaders are expected to have the required skills to promote delivery of quality service and management of individual needs. Lamport & Latone, 2010) advise that the use of new technology poses severe risks and may result in undesirable outcomes in regards to technical or organizational aspects, especially if the implementation and operation are not duly planned and managed. This reinforces Guzeh (2012) view that the right skills are required.

Human capital plays a central role in good governance. The level of engagement within a given system presents a highly effective system that promotes change and the adoption of better strategies that improve efficiency (Murage, 2010). According to Nana and Omorkope (2011), governing bodies and the management need to provide a favorable environment for staff to perform well and deliver effective services in creating an optimistic culture that responds to staff views, welcomes ideas and suggestions, and explains decisions made. For corporate governance, it is, therefore, imperative that staff have rational job descriptions to ensure that their core responsibilities are performed effectively. At the same time, Weimer and Pape (2009) advise that senior managers have a major role to play in presenting a highly structured system that emphasizes on successful change and management of individual needs. The leader can embrace good governance or implement unfavorable policies that limit the success of the governance approach utilized.

2.3.Ethics and good governance

Ethics in business defines the behavior and general approach implemented in identifying what is good or bad within a given system.  McNutt (2010) illustrates that members of the governing body must identify specific values and principles that control individual behavior. Accordingly, this takes into consideration simplicity, accountability, and transparency. Ethical qualities are not entirely detached and distinct from one another; otherwise, they cannot be compartmentalized. Mulili (2010) adds that ethics are interrelated essentials of a single mindset required to espouse proper conduct in the public sector. The author further adds that combined with other governance practices. Ethics has the potential of underpinning governing board members’ and other leaders’ participation in all executive deliberation and decision-making.

A governing body should act under the public interest. This means that the public informs the decisions that are undertaken within a given system. The development of values and principles creates a highly structured system that helps in presenting a highly efficient system that defines positive change within a given organizational context.  According to Macey (2008), these values should be easy to communicate and understand. They should exceed the necessary legal requirements for them to create established principles for behavior in public life. Corporate Governance values can also be useful in promoting a culture of integrity and collaboration throughout the entity through many mechanisms such as codes of conduct, frequent staff consultation and communication, exemplary behavior, and performance assessment and reward processes.

Governance is a complex process that may involve conflict as a result of a difference in ideology among individuals enrolled within the system. This means that to ensure continued integrity while avoiding public concern and loss of confidence, corporate governance mechanisms should be able to guide the way in dealing with any conflicts of interest, whether real or perceived. According to Paccess (2012), it may prove challenging to measure impartially the factors that affect an entity’s performance as far as leadership, ethics, and culture are concerned. This may affect the identification of ethical problems way before they can manifest in organizational performance. Teply and White (2012), however, warn that it is essential for entities to seek an understanding of the maintenance of performance in areas of corporate governance.

Alneser et al. (2014) stress that public sector entity and individuals working within these systems should exhibit a high level of commitment which is crucial and help implement a reliable system that can be emphasized in creating a change process that helps promote change. Ferguson and Voth (2008) point out that the rule of law also holds accountable public sector entities and individuals within them through compliance with constraints on resources voted by the legislature. This guides in demonstrating action in the public interest at all times, and to maintain public trust and confidence, public sector entities should be as open as potential about all their decisions, actions, plans, resource use, forecasts, outputs, and outcomes.

2.4.Politics and governance

Politics can have a positive or negative influence on governance depending on the approach and different elements that can help improve efficiency and change strategy. Atieno (2009) highlights that lack of a proper political will has a detrimental influence on governance. Good political systems influence good governance. Politics affect the running of affairs in government agencies (Abor & Fiador, 2013). The elected official charged with the responsibility of representing people is alleged to be acting in a partisan way to outwit perceived opponents from another party. In such political battles, they end up passing decisions favorable to the political group they belong to instead of making decisions that benefit the county and its residents. Instances in which management of government agencies are notorious for driving their own needs are accessible in procurement and employment.

According to Kajola (2008), it is common for tenders to be awarded to individuals  who supply sub standard goods and services when there were clearly other parties that would had have delivered according to the expectations. Promotions and employment from time to time are done on the basis of patriotism to a political party rather than on merit and performance. With such being the favors given to party patriots at any place they want, rather than to those with the capacity, with time practices change into paternalistic and political meddling in governance affairs that reduce government agencies to more or less extensions of party politics (Guzeh, 2012).

In a decentralized system, political influence is even higher considering that leaders are elected from an election process which does not have a higher focus on their academic or professional success and showing the will to implement good gvernace and attain developed service and production goals. Nicolaescu (2012) notes that despite the fact that decentralized governments are active in financial matters such as planning, revenue collection and budgeting, politician always find ways to exercise controls in ways that favor them. This limits the politicians’ autonomy to fully exercise their mandate. According to Nana and Omorkope (2011) members of the public sometimes feel helpless as leaders plunder resources  due to limited accountability and higher political influence.

2.5.Corruption and governance

Corruption has been endemic in most of developing countries hence curtailing their ability to grow.  Researchers have shown that corruption impede good governance and a deviation from the identified norms in public service. The protection of corrupt leaders by the system has even made it harder to aheive good governance in developing countries (Atieno, 2009; Nicolaescu, 2012). Similarly, Eldon (2014) refine this argument and suggest that developing societies sometimes face a trade-off between political disorder and dictatorship. He further explains that, in a situation of political disorder, there will be instances of stable institutions, low investment, and low economic growth. But in the case of dictatorship it may be possible to create political and social order. The World Bank has showed through a recent report published that corruption is the single major challenge to economic and social development through undermining the rule of law and presenting different strategies that empower the level of performance (Yu & Zheng, 2014).

The adverse effects of corruption on governance means that it is difficult to implement transparent approaches that focus on good governance within the system.  In a report published by the Transparency international (2010) corruption  has been associated with negative outcomes especially in leadership and integrity. Ethical values and principles have been unable to help promote positive values within a given setting. Self-interests exceed the focus on public interests.

Corruption in Kenya has become a systemic challenge becoming very difficult to control. Citizens are deprived of services  at the expense of corrupt officials who have been tasked with implementing better measures that promote change. The introduction of the  Ethics and Anti-Corruption Commission of Kenya (EACC) has been unable to attain major success despite numerous corruption scandals in national and county governments over the years.  Rampant corruption has led to major resource plundering and lack of focus on good governance accrss many developing countries. Corruption has also led to inequitable resource distribution leading to constant ethnic conflicts. Absence of integrity and transparency within the governments influence the decisions made by employees to seek bribes for service rendered.  It is imperative to help shape the local government  and maintain a positive system that can help maintain change and a strong system that define change in system development and ability to manage the needs of many individuals within pubic sector.

2.6.Theoretical framework

In assessing the determinants of good governance, the basic tenets that are defined include the relationship between leaders and their subjects. The public sector is highly complex and requires integration of improved systems for change and promotion of success. therefore the appropriate theory that explains this relationship is Agency theory. Barry and Mitnick developed the agency theory in 1974 aimed at understanding the existing problems that occur in the relationship between principals and their agents (Shapiro, 2005). This theory is developed on the assumption that every organization focuses on maximizing  the wealth of their owners or shareholders.

Thus in application in governance, the theory presents that management in public sector requires a highly structured system that must focus on controlling change and improved commitment to the underlying operational needs. The citizens expect that the leaders they have elected will represent their interest and conflicts arise when members of the public perceive their elected leaders not to be serving them but rather pushing their own social and political interests (Linder & Foss, 2015). In other words, corporate governance systems in the public sector should allow elected leaders scope for flexibility, accountability and performance and to make rapid change in relation to how they perceive the expectations of the members of the public in the management of ongoing operations (Weidenbaum, 2004).

2.7.Conceptual framework

Source (Author, 2020)

CHAPTER THREE: METHODS AND TOOLS AND TECHNIQUES

3.1.Introduction

This chapter will provide a critical review of essential research processes that define a successful emphasis on accurate research development. The major concepts that will be explained include research design, study area, target population, sample size, sampling procedure, data collection, research instruments, data analysis, and data analysis methods.

3.2.Research design

The study will be a descriptive cross-sectional survey design. This approach is essential in ensuring that data will be collected without manipulation of the research variables. Inferences will be made based on a specific understanding of independent and dependent variables (Kothari, 2009). The researcher will focus on engaging the respondents at a single point in time. This design will help understand determinants of good governance in Nairobi county.

3.3.Study area

Nairobi County is the county number 047 and also serves as the Headquarters of the Republic of Kenya. The county was formed on 4^th March. Nairobi county is the third smallest although the most populous county in Kenya with 10,411,220 residents based on census 2019 data. he Governor of Nairobi County is Mike Mbuvi Sonko.

3.4.Target population

The study will target both political and non-political leaders within the County of Nairobi. This will help understand different perspectives regarding the research problem and help make better recommendation to improve the quality of governance.

3.5.Inclusion and Exclusion criteria

3.5.1.      Inclusion criteria

Current active official in Nairobi County

Political and Nonpolitical officials in Nairobi County

Individuals willing to consent

3.5.2.      Exclusion criteria

MCAs  and Nonpolitical leaders from the past county government

Individuals who refuse to consent .

3.6.Sampling and sample size determination

3.6.1.      Sampling

The study will utilize stratified random sampling method. The common characteristic that informs the different strata in this case is that these nurses work in same sections. Stratified sampling has a greater precision and ensures that there is sufficient sample to ensure that each group is well represented (Lohr & Lohr, 2019). The strata that are considered in this case include three which are cabinet secretaries, elected members of assembly and nominated members of assembly.

3.6.2.      Sample size determination

The sample size will be calculated using Taro Yamane’s sample size formula.

Where

Where

N = Total population (133)

e = Margin of error (0.1)

n = sample size

1 is the standard coefficient

Therefore

n

Thus the samples will be 58.

The sample size for each strata will be

3.7.Data collection

3.7.1.      Data collection tools

The study will use a standardized questionnaire to help in identifying better outcomes based on the research question. The questionnaire will be administered by research assistants. This tool will be appropriate because it will help in gathering data (Patten, Newhart, Patten, & Newhart, 2018). These questionnaires were characterized by close ended questions with the aim of collecting specific information in regards to good governance in Nairobi County.

3.7.2.      Data collection procedure

The researcher with the help of trained research assistants who have better understanding on City Hall and Nairobi county offices to access the sample population. Data collection will utilize convenience method where the researcher will visit the offices of these officials and set meeting where they will be engaged in filling the questionnaire honestly based on their understanding of the governance in Nairobi county. The research assistant will introduce themselves to the target population to create a favorable environment where they can provide accurate results based on their knowledge. The researcher and her assistance will explain the study   objectives and expected outcome to the respondents to give a chance to consent willingly without coercion. The data will then be collected from those who have consented. The research assistant will help the respondents answer the questions effectively.  The researcher will oversee the whole process and ensure that the research assistants are providing respondents with accurate information through constant review of the filled questionnaires.

3.8.Validity and Reliability

Validity is the measure of the truth or accuracy of the claim (Grove, Gray, & Burns, 2015).  A pretest will be done at the City Hall using 10% of sample size which will help the researcher to have generalizability of the accuracy of the tool.

Reliability refers to exact replicability of the processes and the results (Heale & Twycross, 2015).This is mostly used in quantitative researches whereby results of an experiment should be exactly as those found earlier similar research. In this study the researcher will use experts from public governance  and a statistician to assess the data collection tool to ensure that it addresses the research objectives.

3.9.Data management

3.9.1.      Data Cleaning and Entry

The researcher with the help of a qualified statistician will cross check the filled questionnaires to ensure that they are accurately filled and exclude questionnaires that were not completed successfully. Collected data will be entered in EpiData 3.1 database then analyzed using SPSS computer package, version 25.

3.9.2.      Data Storage

The consent forms, questionnaires and forms will have serial numbers. The respondents will not have to include their names on them. Once they have been filled, they will be locked up in a safe cupboard. The laptop that will be used in the analysis of the data will have a password so that it will have limited access by authorized personnel only. The consent forms and questionnaires will be safely stored for five years after which they will be destroyed.

3.9.3.      Data analysis and presentation

SPSS version 25 will be used in analyzing the data.  The findings will be considered significant at p<0.05. Data will be presented in tables, charts and graphs. All statistical tests will be conducted at 5% level of significance (p < 0.05).

Descriptive statistics will be used to describe the socio-demographic characteristics of the sample population. Among the variables to be used for this will include but not limited to; Gender, age, level of education, and marital status. To present the outcome of this analysis will be tables and graphs which form part of the report writing. The table generated will give frequency and percentage to all the demographic items in the questionnaire. Correlation analysis will be conducted to determine the relationship between independent and dependent variables. Multiple regression analysis will be used to predict determinants of good governance on Nairobi county.

3.10.                    Ethical Consideration

The researcher will seek clearance from internal review committee which will approve the proposal based on ethical guidelines.  The researcher will also seek to approval from the Nairobi County government and NACOSTI to ensure that the study conforms to outlined research requirements. Informed consent will be sought from the study participants after the purpose of the research study has been explained. Verbal and written consent by either signing or providing their thumbprints on the consent forms will be obtained from the two parties.  There will be no coercion nor negative consequences to the participants who decline to participate. It will be a non-invasive study. Participant’s confidentiality and privacy will be observed throughout by ensuring personal data do not appear anywhere during the study and results dissemination.