An investigation on factors affecting budget implementation on local authorities in Kenya (a survey of Nyeri Municipality)
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Date
2013-08-27
Authors
Mwai, Mary Wangithi
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Abstract
The budget is a standard against which the actual performance can be compared and
measured. Budgets are used to communicate top management expectations to the managers
and employees. Annual budget is an important instrument of power and governance. An
analysis of the Nyeri municipal council estimates budget transcription sheet-detailed from
2007-2010 reveals a trend of budget variance between approved estimates and actual
spending. The main objective of this study was to investigate the factors affecting budget
implementation in local authorities in Kenya with a focus on the municipal council of Nyeri.
This would help determine if budgets are fully implemented in local authorities in Kenya and
give recommendations based on findings of the study. The study involved a literature review
which included a review of budget implementation, theoretical review, an empirical literature
in relation to the previous studies related to the research and review of the research gap to be
filled. The study adopted a descriptive research design which involved a field survey in the
municipal council of Nyeri. The target population was the 71 employees spread across the
entire departments. The respondents constituted of among others the town clerk, chief officers
and section heads of departments. Primary data was collected from the sampled population
using questionnaires distributed to the respondents. The data provided information that formed
the basis for discussion and interpretation of the result.
The data from the study was analyzed using both quantitative and qualitative techniques. The
findings were presented using tables and charts for ease of interpretation and to enhance
clarity and precision. On the budgeting process, the study found that budgets were created to
cover a period of 12 months, and that budgets at Nyeri Municipal council were prepared twice
every year. On the effect of budget planning and control on budget implementation, the study
found that there were various challenges facing budget planning and control but lack of
dynamic structure and lack of integration were the two outstanding drawbacks. On the effect
of integrity and ethics on budget implementation and control, the study found that there was
clear linkage of funding to outcome with identifiable performance measures. On the effect of
financial availability on budget implementation the study found that Nyeri Municipal council
was seldom successful in ensuring expenditure prioritization in relation to achievable
equitable resource allocation. On the effect of quality of manpower and motivation, the study