Regulatory Framework and Financial Corporate Compliance in Public Universities in Kenya

Abstract

One of the important components of corporate governance that improves accountability and transparency in an institution's financial management is financial corporate compliance. The emergence of alarming cases of financial impropriety in Kenya's public universities has intensified the demand for financial accountability in the public sector and exposed the boards and management to increasing scrutiny. Public organizations have reported cases of inadequate or absence of financial compliance, and public universities have also cited comparable circumstances in audit reports. It is unclear, however, what the causes of this compliance are or what function corporate governance plays in it. The purpose of this study was to determine the effect of regulatory framework on financial corporate compliance at Kenya's public universities. The study adopted a descriptive survey research design. The study's target population was 40 accredited public universities in Kenya. The data were gathered through the use of extensive, quasi-structured questionnaires. The study used descriptive statistics such as frequency distribution tables, percentages, and measures of central tendency such as the mean. Chi-square and correlation analysis were used to establish the relationship between the study variables. The study findings indicated that regulatory framework affects positively financial corporate compliance during the period of study and its effects are significant. The study also found that the universities are regulated by accredited regulatory bodies as stipulated by the constitution. This study recommends that the government should employ thorough accountability measures and policies that will make every officer in public universities be held responsible for every activity he/she has undertaken on behalf of the university that may lead the university to incur some expenditures.