International Journal of Management and Leadership Studies
2025; 6(i): 791-804
ISSN:
2311 7575
EFFECT OF GENDER DIVERSITY ON PERFORMANCE OF SELECTED STATE CORPORATIONS IN KENYA
Nyamai Maureen Mwende and Dr. Angeline Wambugu
Published:
01 December, 2025
Volume:
6
Issue:
i
Keywords:
Gender Diversity, Organizational Performance, State-Owned Corporations (SOCs
This research examines the significance of board diversity on the performance of selected
state-owned corporations in Kenya, highlighting a critical gap where over 30 percent of
these organizations lack equality in gender, age, race, and education, which is essential
for fostering innovation, enhancing decision-making, and adhering to the Mwongozo
Code of Governance. Prior research often focuses on specific commercial banks or aspects
of diversity, neglecting a comprehensive examination of all inclusion policies and the
impact of local cultural factors. The primary objective is to assess the influence of boardlevel diversity on organizational outcomes, encompassing diversity in gender, race, age,
and. The primary target population comprises personnel across 14 SOCs, including board
members and senior management, due to their unique insights into organizational
operations. A sample of 210 representative respondents, comprising board members and
senior managers, was selected using a census approach, ensuring gender balance. The
primary instrument was a structured questionnaire utilizing a five-point Likert scale,
followed by an assessment of equipment consistency and validation of content through
a pilot study involving 10 percent (2 of 14 SOCs). The data was collected online over 14
days, with the assistance of research assistants, to enhance response rates. The study
established that gender diversity (β = 0.218, p = 0.003) significantly enhance
organizational performance. It concluded that inclusive and diverse boards foster
innovation, accountability, and effective decision-making in state-owned corporations.
Recommendations highlighted the need for targeted diversity policies, leadership
training, succession planning, and continuous monitoring to optimize governance.
Future studies should employ longitudinal designs, explore moderating factors like
leadership style and organizational culture, and incorporate qualitative insights.
Expanding research beyond SOCs to private firms and SMEs, while considering digital
transformation and workforce mobility, would improve applicability.