Determinants o f Government Expenditure o n Public Flagship Projects i n Kenya
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Date
2019
Authors
Nganyi, Silas Muyela
Jagongo, A. O.
Atheru, Gerald Kalenywa
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
The
Kenya Vision 2030 flagship projects expected to generate rapid economic growth in the country are
threatened by inadequate source of funding, financial management problems and failure to link policy, planning
and expenditure budgeting. The projects continue to experience inadequacies in project appraisal and
implementation time overruns. Therefore, without a clear financial framework, fiscal indiscipline, resource
misallocation and inefficient use of resources will militate against achieving the Kenya Vision 2030 targets. The
overall objective of this study was to evaluate determinants of government expenditure on public flagship
projects in Kenya The specific objectives were to: evaluate the influence of planning process; source of funds;
and management responsibility on government expenditure on public flagship projects in Kenya. The theories
reviewed in the study were public finance, budget, cost benefit analysis and principal agent which provided
grounds for conceptual framework. The study employed descriptive research design, positivist philosophy and
multiple regression model. The target population was the planned 348 flagship projects for the period 2008 2012.
The unit of analysis was projects based on sample size of 96 stratified r andom sample while data was collected
using a questionnaire. The findings showed that planning process, source of funds and management
responsibility had significant positive influence in determining government expenditure on public flagship
project in Kenya. The study recommended that, public entities should strengthen and improve planning process
by deepening MTEF within programme based budgeting; the National Treasury should increase resources
required for financing public flagship projects by considering public private partnerships as a potential source;
and public entities should improve, strengthen and enforce management responsibility when designing public
flagship projects. The two areas suggested for further research were; impact of project characteristics on the
choice of Public Private Partnership financing model and impact of fiscal decentralization on financing public
projects in light of devolved systems of governance in Kenya.
Description
Research Article
Keywords
Government expenditure, Management responsibility, Medium term expenditure framework, Planning process, Source of funds, Public flagship project
Citation
International Journal of Economics and Finance; Vol. 11, No. 6; 2019