Budgeting Techniques and Quality of Financial Reporting in Nairobi City County, Kenya
| dc.contributor.author | Obonyo, Brian Tirimba | |
| dc.date.accessioned | 2025-07-25T09:26:10Z | |
| dc.date.available | 2025-07-25T09:26:10Z | |
| dc.date.issued | 2025-05 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of Degree of Master of Business Administration (Accounting Option) of Kenyatta University, May 2025. Supervisor Caroline Kimutai | |
| dc.description.abstract | High quality financial reporting is critical for fostering transparency, accountability, and informed decision-making in public sector governance. Every economy sector places a premium on financial reporting quality, which draws heavily from other functions within an organization. Nairobi County's financial reporting, however, has reportedly been of low quality due to bad financial choices, ineffective operations, stakeholder mistrust, and lost opportunities. Therefore, this study ascertained how budgeting techniques affects quality of financial reporting of Nairobi City County Government in Kenya. It evaluated influences of incremental, activity based and zero-based budgeting on quality of financial reporting. Theory of budgeting, resource-based view and complexity theories served as theoretical reviews. The study's framework was a descriptive study design. Responses were drawn from one hundred and twenty-two directors, internal auditors, finance officers and accountants of finance and economic planning department of Nairobi City County Government in Kenya. Stratified sampling approach was employed in selecting ninety-three responders who made up sample size with Yamane sample size formula. This study employed a quantitative approach, utilizing structured questionnaires to gather primary data. To ensure the robustness of the findings, the research instruments underwent a rigorous assessment of reliability and validity. Data analysis involved descriptive techniques (mean, standard deviation, percentages) to explore the data's central tendency and variability. Additionally, inferential analysis techniques, specifically multiple regression, were employed to identify and quantify relationships between variables. Furthermore, diagnostic tests for normality, heteroscedasticity, multicollinearity, and stationarity were conducted to ensure the assumptions of the statistical models were met. Results were displayed with graphs, charts, and tables. Ethical principles were upheld as required. Findings unveiled that incremental budgeting insignificantly and positively affect the quality of financial reporting; activity-based budgeting provided a significant and positive effect on the quality of financial reporting while zero-based budgeting unveiled an insignificant positive effect on the quality of financial reporting in Nairobi City County. This study contributes to the literature by providing empirical evidence on the comparative efficacy of budgeting techniques in county governance, addressing a gap in context- specific public sector research. The study concludes organizations should prioritize the implementation of activity-based budgeting practices to enhance their financial reporting quality effectively. The survey recommends that Nairobi City County should actively promote the adoption of activity-based budgeting practices throughout the organization. This can be achieved through targeted awareness campaigns, training programs, and workshops to educate financial staff and decision-makers about the benefits and implementation strategies of activity-based budgeting. Encouraging the use of this budgeting approach can further enhance the financial reporting quality. Future research could delve deeper into the reasons behind the statistically insignificant effects observed for incremental and zero-based budgeting using qualitative approach. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/30850 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Budgeting Techniques and Quality of Financial Reporting in Nairobi City County, Kenya | |
| dc.type | Thesis |