The main purpose of the study was to establish the role of corporate governance in financial management. An explanatory research design was adopted in the in-depth study on the corporate governance applied by 50 NGOs in Kenya. Primary data was obtained by administering questionnaires. Data was analyzed using both quantitative. From the regression results corporate governance efficiency/effectiveness, Responsibility, Transparency, Integrity and Accountability had significant and positive effect

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... n financial management of MFI. Thus, leading to efficient, effective and sustainable entities that have contributed to the welfare of society by creating wealth, employment and solutions to emerging challenges; creating positive image among the stakeholders both locally and internationally; and promoting transparency and accountability recognized by the stakeholders are among the major importance of corporate governance. The study recommends that there is need for the Non-Governmental Organizations through relevant agencies to train shareholders and establish a shareholders association to heighten their involvement and that there is need for the management to ensure that there are sound communications channels in order to facilitate easy adoption of corporate governance.