Integrated Financial Management Information System and Fund Management in Homa Bay County in Kenya
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Date
2025-11
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Kenyatta University
Abstract
Fund management of Homa Bay County is currently facing challenges as auditor general reports are suggesting. The system is struggling to effectively track and manage the allocation and utilization of funds within the county government due to lack of proper training and capacity building for staff members responsible for using the system. This has led to errors in data entry, inaccurate reporting, and inefficiencies in fund management processes. Additionally, there have been instances of corruption and mismanagement of funds within the county government, which has further exacerbated the challenges faced by IFMIS. Lack of transparency and accountability in financial transactions has impeded system's ability to funds flow oversight and control effectiveness. Therefore, this review endeavors to ascertain integrated financial management system impacts on fund management in Kenya’s Homa Bay County. Specific questions were to establish the effect of IFMIS staff technical skill, IFMIS system quality, IFMIS internal control, and IFMIS risk control on fund management. Theories anchoring this study included agency, stewardship and technology acceptance theories. Utilizing descriptive research 98 respondents was chosen by stratified sampling from the 327 employees target populace of Finance and Economic Planning (FEP) department. To collect dat, a structured questionnaire was utilized where piloting was conducted to ascertain its’ validity and reliability. Descriptive statistics (mean and standard deviation), examined quantitative data. In order to examine how variables were interrelated and how much they affect each other, inferential statistics like correlation analysis and multiple regression analysis were employed. The study findings were presented using tables and figures. Diagnostic tests, including multi-collinearity, normality and heteroscedasticity, were done. Ethical considerations included adherence to Kenyatta University and NACOSTI guidelines, ensuring the integrity and transparency of the research process was upheld. The study found that IFMIS staff technical skill, IFMIS system quality, IFMIS internal control and IFMIS risk control had a positive significant relationship with fund management in Homa bay County in Kenya. The study concludes that the technical skills acquired by the County staff led to proper use of resources and allocation, leading to proper direction of funds to areas with the greatest need. The IFMIS system of the County was of high quality which had enhanced transparent financial transactions leading to lesser occurrence of mismanaged resources and corruption. IFMIS internal control had increased transparency enabling stakeholder to effectively monitor the allocation of funds and how they were being used which reduced embezzlement of funds assuring accountability of public funds. The IFMIS risk control made that County staff and other stakeholders accountable minimizing the occurrence of poor management of funds. The examination advices that the County should enforce targeted training programs focused on fund management principles and practices for IFMIS staff within the County. The County may consider to acquire enhanced user interface and experience to have a system that is more interactive and can be accessed by all the users. The County need to implement training programs continuously for those dealing with the County’s management of funds. The County embrace an inclusive staff training programs on administration of funds to enable them to be upto date with practices involved in management of risks and how IFMIS functions.
Description
A Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration (Accounting Option) of Kenyatta University, November 2025.
Supervisor
1. Salome Musau