Factors influencing financial management in state ..corporations: the case of Muhoroni sugar company factors influencing
Nyakondo, Richard Mobutu
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The purpose of this research was to identify independent variables and intervening variables and examine how they influence financial management in Muhoroni Sugar Company Ltd, which is on its deathbed as a result of poor financial management and embezzlement of its resources. Muhoroni Sugar Company Ltd, which for many years used to be one of the vibrant and _efficiently managed sugar producing mills in the country is ailing and headed for a total collapse. The company has been slowed down by ageing infrastructure, high production costs, failure to impress technological change, and weak financial controls and accounting systems, among other factors. State Corporations in Kenya are facing financial management challenges and as a result they have to adopt International Public Sector Accounting Standards (IPSASs) as a tool to improve transparency, efficiency and effectiveness in service delivery. The purpose of this study was therefore to identify the factors influencing financial management in state corporations in Kenya. The research was conducted in Nyanza Province, Kenya, aiming to explore the factors influencing financial management in Muhoroni Sugar Company Limited. The main objective of the study was to identify the factors influencing financial management in state corporations and how they impact on their performance. This study therefore adopted a case study design methodology because the researcher intended to collect data on factors influencing financial management in Muhoroni Sugar Company Ltd which is currently in receivership. The main instrument of data collection was a structured questionnaire which was administered to Muhoroni Sugar Company's Board of Directors, Managers and Supervisors, targeting 35% of the population of interest through stratified simple random sampling. The target population of this study consisted of 12 Board of Directors, 20 Managers and 60 Supervisors of Muhoroni Sugar Company Limited. Since the researcher wanted to get the clear and unquestionable facts of this research, he also included 60 Supervisors in the target population so that the researcher was able to compare the information received from them in relation to the one the Board of Directors and the Managers gave. The data collection procedure used to collect the questionnaire was drop and pick approach. The research questions were systematically generated from the objectives. The data collected was coded, analysed and presented using simple frequency distribution tables, graphs, pie charts, and percentages with the aid of SPSS package. The data collected was analyzed through the use of quantitative and qualitative analysis. A regression model was used to analyze internal and external factors influencing financial management in Muhoroni Sugar Company Ltd. The researcher used both primary data and secondary data. Primary data was collected by way of a semi-structured questionnaire consisting of open ended and closed ended questions. Secondary data was gathered from magazines, newspapers and company journals. Questionnaires were used because they are easy to read and answer. Literature was reviewed from those related to financial management in state corporations especially the sugar industry in Kenya. Extensive literature was reviewed on items of specific objectives influencing financial management in state corporations. The purpose of this study was not only to acknowledge contri butions of others but also to exam ine if the Iiterature supported the study.