BOARD COMMITTEE REPORTS AND PROFITABILITY OF SUGAR MANUFACTURING COMPANIES IN KENYA

Alice Okuta, Dr. Lucy Wamugo Mwangi

Abstract


The sugar manufacturing sector in Kenya has been experiencing a decline in1profitability, measured using return1on assets, for the pastfiveyears (2017-2021). This has led to closure of some of the companies and other still fail meet their obligations. The purposeofthisstudy was to determine the effectofboard committee reports on profitability of sugar manufacturing companies in Kenya. The study was guided by stewardship theory. The explanatory research design was used in this research. Moreover, the study targeted 10 sugar manufacturing companies in Kenya. In addition, the participants were 10 staff in the management of eachofthe10 sugar manufacturing companies in Kenya. Since target populationwassmall, the studyused a censustechnique and hence the entire populationwas included in the research. The study covered duration of 5 years from 2017 to 2021. Primary data in this study was gathered using structured questionnaire and secondary data was gathered using audited financial Statements. Data was analyzed by use of descriptivestatisticsincludingmean,standard deviation, percentage and frequencies aswell as inferentialstatistics including multiple linear regressionanalysiswiththe support of statistical software referred to as SPSS version 25. The findingswere presented in tables and figures. The findings indicated that board committee reports had a positive and significant influence on profitability of sugar manufacturing companies in Kenya. The study recommends that the committee should analyze financial statements, key performance indicators, and financial trends to provide insights into the company'sfinancialhealthandidentify areas for improvement. The board of management should establish a clear reporting schedule for board committee reports, ensuring they are provided on a regular basis and aligned with the board's meeting calendar.

Key Words: Board Committee Reports, Profitability, Manufacturing Companies

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References


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