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  1. Home
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Browsing by Author "Ogongo, Sammy Onyango"

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    Determinants of Absorption of Capital Budgets by Nairobi City County, Kenya
    (Kenyatta University, 2025-11) Ogongo, Sammy Onyango
    The absorption of capital budgets is a crucial factor in the effective delivery of public services, particularly in large urban centers such as Nairobi City County. Ineffective absorption rates result in stalled projects, underutilization of allocated funds, and unmet development goals, leading to a backlog of unimplemented projects, deteriorating infrastructure, and growing public dissatisfaction. The study main objective is to assess the determinants of absorption of capital budgets by Nairobi city county. The specific objectives were: to determine speller effects of budget planning on the absorption of capital budgets by Nairobi City County; to evaluate the actual practices of financial management on absorption of capital budgets in Nairobi City County; determine the procurement processes of capital budgets and rate of its absorption in Nairobi City County; analyze budget implementation compatibility in relation to absorption of capital budgets by Nairobi City County. The research topic was analyzed in a descriptive design. The population also included senior management, budget officers, procurement officers, financial managers, and project implementation staff responsible for overseeing and executing capital budgets. Specifically, the study focused on approximately 200 individuals who are directly involved in the planning, management, and execution of capital projects within Nairobi City County. A census was used instead of a sampling technique because the population of interest is relatively small, with 200 individuals. The study employed two primary research instruments: questionnaires and interview guides. All of the questionnaires were checked for completeness and accuracy before any processing of the data. The study analyzed the qualitative data using descriptive statistics with the aid of SPSS (Version 26). The results summarized using standard deviation, frequencies, means and percentages. The study results were further put in charts, graphs and tables. Based on the study findings, it can be concluded that the absorption of capital budgets by Nairobi City County is moderately effective, facing significant challenges despite a largely qualified and experienced workforce. While there are perceived strengths in legal compliance during budget planning and accountability through auditing, critical weaknesses persist across all stages, particularly in the lack of flexibility in budget reallocation, inadequate financial resources, untimely fund disbursements, and pervasive inefficiencies and rigidity within procurement processes. The study recommends that Nairobi City County should implement more flexible budget reallocation mechanisms to adapt to unforeseen project needs and facilitate timely fund utilization. The county should enhance its financial resource mobilization and ensure timely disbursement of funds to match planned capital project expenditures. A future study could explore the specific impact of political interference on capital budget absorption rates in county governments

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