State corporations have been instrumental to the development of society, serving as the main avenue for governments to deliver public services. They have been instrumental in the delivery of health, education, transport and other critical services and they continue to account for a significant portion of economic activity. However, locally their performance has been below par resulting from lack of financial accountability and transparency which limits their ability to deliver public services and maintain a good standing. The focus of this research was to examine whether corporate governance factors do have an influence on the financial accountability of state-owned enterprises. The study specifically looked at board diversity, board independence, ethical practices and risk governance practices influence on financial accountability of state-owned enterprises. Further, the impact of political environmental was considered as moderator variable in the stated main objective. The survey was premised on the stakeholder and agency theory. A descriptive research design was applied in the survey with a total of 138 state-owned enterprises considered for the research. A sample of 102-ranking officer in the finance/governance and compliance departments were considered in the research. Semi-structured questionnaires were designed to collect research data with drop and pick method used in the collection of study data. The collected survey data was analyzed using a mix of quantitative and qualitative research approach. The survey obtained eighty responses which presented a 78% response rate which was dependable for utilization in quantitative analysis of the interaction between the predictor variables and financial accountability of the state-owned corporations. The study used the Spearman rank correlation in analysis with the results affirming that there is a significant correlation between corporate governance factors, political environment, and the operational performance of state corporations in Kenya. Regression tests affirmed there was significant predictive power of corporate governance factors on the financial accountability of state-owned firms in Kenya. The findings of the study led to the conclusion that corporate governance factors (board diversity, board independence, ethical practices, risk governance practices) have positive and significant effects on the financial accountability of State-Owned Enterprises in Kenya. This shows that the state firms can increase their financial accountability through the application of proper corporate governance practices. The study found out that board diversity and board independence did not have a significant influence on the financial accountability of State-Owned Enterprises in Kenya. Individually, the coefficients supported the conclusion that ethical practices and risk governance practices have a positive impact on financial accountability of State-Owned Enterprises in Kenya. Overall, the findings found out that political factors do have a positive moderating effect on the relationship between corporate governance factors and financial accountability of State-Owned Enterprises in Kenya. The study suggestions are that for state firms to increase the degree of financial accountability, the study recommends that they embrace the best governance practices and ensure that these practices specifically address how to properly manage shareholders’ assets, provide adequate risk management and that the codes of conduct and standards of operation are enforced in day-to-day operations and not just put in writing. The study further calls on the government to develop sector specific governance frameworks that would complement the guidelines from the Mwongozo code of governance. Finally, the study calls on the government to enact legislations that makes the provisions of the Mwongozo code mandatory and not just mere suggestions.