Influence of Board Demographics on Performance of Commercial State Enterprises

Abstract

This study sought to assess the influence of board demographics on the performance of commercial state owned enterprises in Kenya. The population of the study was 33 commercial state owned enterprises that had participated in performance contracting over the five year period 2010 to 2015 in Kenya. A sample of 24 commercial state owned corporation was selected. The main instrument of primary data collection was self-administered semi-structured questionnaire, administered on a stratified sample comprising senior managers. Secondary data was collected from the Commercial State Corporations Advisory Committee Secretariat as well as from company secretaries of selected corporations.  Descriptive statistics of frequency, percentage were calculated. Regression analysis established that education level had statistically significant influence on performance of commercial state owned enterprises in Kenya. However, age, tenure and public service background did not statistically significantly influence performance of commercial state owned enterprises. The study recommends further studies on how education level affects the board decision making and influence on commercial state owned enterprises.