Public Financial Management Practices and Financial Sustainability of Narok County Government, Kenya
| dc.contributor.author | Sanoe, Stephen Simai | |
| dc.date.accessioned | 2026-02-24T09:04:18Z | |
| dc.date.available | 2026-02-24T09:04:18Z | |
| dc.date.issued | 2025-10 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfillment of the Requirements for the Award of the Master of Businesss Administration (Finance Option) Degree of Kenyatta University, October, 2025 Supervisor; 1.Salome Musau | |
| dc.description.abstract | Narok County's financial stability has been called into question following major fluctuations in its Own Source Revenue. In 2022/2023 fiscal year, the county faced a substantial shortfall of 32.07%, with actual revenue falling from the projected Kshs 4,516.6 million to Kshs 3,067.67 million, as outlined in Auditor General's 2024 report. This shortfall raises concerns about the county's fiscal health and its aptitude to fund indispensable services and initiatives, where actual funds allocated to development expenditure decreased from an initial estimate of Kshs 4,827,658,645 at the beginning of the financial year to Kshs 3,969,520,819 by the end of that year. The County faces overall growth rate of only 0.97% over the past decade indicating a pressing need for enhanced revenue generation strategies (Office of the Auditor-General, 2023). While effective financial management practices are essential for improving revenue collection, allocating resources appropriately, and promoting accountability and transparency, there was a dearth of literature addressing the specific practices that could bolster financial sustainability in county governments, particularly within the context of Narok County. Consequently, this study aimed to investigate PFM practices on Narok County Government financial sustainability with specifics on impacts of financial planning, revenue mobilization, financial reporting, and internal control. Fiscal Sociology, Agency, Stewardship and Institutional Theories was anchor the study. The target population comprises 76 respondents, including FED department, employees, a member of county assembly, director and eight chief officers. For representative sampling sample size was obtained by random stratification to include 62 participants based on established statistical methods. Data was collected using a questionnaires as well as data extraction tool for the secondary data. Research tool’s reliability and validity was assessed through expert consultations and Cronbach's Alpha analysis, while ethical considerations ensured informed consent and participant confidentiality. Other diagnostic tests included normality, linearity, multicollinearlity and heteroskedasticity. Using SPSS, data underwent descriptive statistics and regression analysis, adhering to ethical standards throughout the research process. The study established that financial planning, resource mobilization, financial reporting and internal control positively significantly affected financial sustainability of Narok County. The study concludes that proper financial planning assists the County in allocating resources in an effective manner making sure that money is geared towards the most needed areas like in the health, education and infrastructure sectors. Proper resource mobilization enables the County in diversifying its sources of funds minimizing dependence on one way of generating income. Effective financial reporting promotes transparency with the County’s operations making stakeholder have a clearer perspective of the County’s financial health. Proper implementation of internal control systems makes the County be transparent and accountable it its financial operations preventing fraud and misappropriation of County’s resources thus protecting the public funds. It was recommended that a complete system for managing county finances that is in line with its strategic objectives to ensure that the financial activities back long term sustainability be developed. The County should develop an all-encompassing structure for allocating resource by prioritizing resources. The study recommends that County should develop a comprehensive risk management framework to identify and mitigate financial risks within Narok County | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32560 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Public Financial Management Practices and Financial Sustainability of Narok County Government, Kenya | |
| dc.type | Thesis |