Financial Management Practices and Performance of Devolved Sub-County Treasuries in Makueni County, Kenya
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Date
2021
Authors
Muthama, Kennedy Maundu
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Financial performance has remained a nightmare for most of the counties in Kenya as they struggle to meet the revenue collection targets. Despite the several measures to ensure proper financial management many counties failed to make proper decisions in managing of their finances. In addition, the counties have not practiced proper bookkeeping and budgeting practices more so in their devolved units. This study sought to ascertain how financial management practices affect performance of devolved sub-county treasuries in Makueni County, Kenya. Specifically, the study looked at revenue collection practices, budget control practices, financial reporting and analysis practices and asset management practices in relation to the performance of devolved sub-county treasuries in Makueni County. This study was anchored on three major theories namely, positive accounting theory, accounting theory and contingency theory. The research adopted a cross-sectional survey design. The study targeted the 227 employees working in the devolved sub-county treasuries within Makueni County from which a sample of 144 respondents being the top-level management, senior management/supervisory level and low-level management staff were considered. Stratified random sampling was used to select respondents as it gave equal chances for each element to be selected. This study collected primary data through use of a questionnaire and secondary data by use of a data collection form. Data was analyzed using descriptive (means and standard deviations) and inferential statistics (correlation and regression analysis). Statistical Product and Service Solutions (SPSS) was the main software for data analysis. Tables and figures helped in presentation of the findings. It was shown that majority of the devolved sub-county treasuries in Makueni County had adopted revenue collection practices. From regression results, revenue collection practices had the second largest and significant influence on performance of sub county treasuries in Makueni County. It was noted that majority of the devolved sub-county treasuries in Makueni County practiced budget control as part of the financial management practice. Regression results indicated that budget control practices had the least and insignificant influence on performance of devolved sub-county treasuries in Makueni County. The study recommends that Revenue Managers of the sub-county treasuries in Makueni County should adopt automation of the systems to be used in collection of revenues. This study recommends further studies to be conducted taking a sample of more than one county in Kenya for comparative analysis
Description
A Research Project submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Master Degree in Business Administration (Finance) of Kenyatta University, October, 2021
Keywords
Financial Management Practices, Performance, Devolved Sub-County Treasuries, Makueni County, Kenya