CORPORATE GOVERNANCE AND DAIRY FARMERS’ MEMBERSHIP IN COOPERATIVE SOCIETIES: A CASE OF GITHUNGURI DAIRY FARMERS COOPERATIVE SOCIETY

Abstract

Globally, cooperative societies are recognized as pivotal in enhancing economic empowerment among smallholder farmers by facilitating resource pooling, knowledge sharing, and market access. In Kenya, dairy cooperatives play a critical role in connecting farmers to formal markets, offering fair pricing, and enabling access to credit and training. Despite these benefits, governance challenges such as weak leadership, limited member oversight, and poor communication often undermine member participation and trust. This study examined the relationship between corporate governance and dairy farmers’ membership, focusing on Githunguri Dairy Farmers Cooperative Society in Kiambu County. Employing a descriptive research design, the study targeted 1,515 management and staff members, with a stratified random sample of 316 participants. Data were collected using structured questionnaires, validated through expert review and pilot testing, and analyzed with SPSS using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings revealed a strong and statistically significant positive relationship between corporate governance and membership (r = 0.612, p < 0.01), with governance practices explaining 37.5% of membership variance. The study concludes that robust governance structures enhance trust, satisfaction, and sustained membership, and recommends policy, managerial, and technological interventions to strengthen cooperative governance and member engagement.