Financial Management Practices and Financial Performance of Non-Commercial Semi-Autonomous Government Agencies in Social Protection Sector in Kenya
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Date
2023-10
Authors
Katee, Simon Mutungi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The conceptual association between financial management practices and financial performance amongst many government agencies both in developed and developing economies remain unresolved up to date. This study sought to evaluate the influence of budget management on financial performance of Semi-Autonomous Government Agencies under social protection sector in Kenya, to examine the influence of financial controls on financial performance of Semi-Autonomous Government Agencies under social protection sector in Kenya and to evaluate the influence of funding practices on financial performance of Semi-Autonomous Government Agencies under social protection sector in Kenya. This study is underpinned by three theories namely goal setting, contingency, and agency suppositions. Descriptive survey research methodology was adopted. The population size was 19 non-commercial SAGAs under social protection sector in Kenya. Data was collected from the corresponding 19 senior officers, namely, chief finance officers or/and chief accountant whereby structured questionnaires were utilized. Data was analyzed using inferential approach, namely multiple regression. It was found out that budget management, financial controls and funding practice have a positive influence on the performance of SAGAs in Kenya. This study recommends that budget management in relation to enhancing the performance and operations of SAGAs be embraced by all government agencies. This is because from the study, budget management acted as a control tool to keep the Agencies on track. Secondly, the SAGAs need to put in place strong internal controls to ensure that the funds received and operations of the Agencies are well monitored. This is because from the study, it was determined that SAGAs that embraced financial controls, had a monitoring team to monitor progress of projects and regularly undertook cost-benefit analysis on projects which led to enhancement in performance. Thirdly, the SAGAs need to undertake funding practices and benefits realized from previous grants received from donors. This will enable SAGAs expand their operations and have a good structure in place thus leading to improvement of performance.
Description
A Research Project Submitted to the School of Business, Economics and Tourism (BET) in Partial Fulfilment for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta University, October 2023.
Keywords
Financial Management Practices, Financial Performance, Non-Commercial, Semi-Autonomous Government Agencies, Social Protection Sector, Kenya