Public Financial Management Practices and Performance of Selected County Governments in Kenya
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Date
2023-11
Authors
Mong’are, Winnie Bochaberi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Although county governments were introduced to devolve functions and bring
services closer to people, increased cases of misappropriation and corruption hinder
this overall objective. The aim of this study was to examine how financial
management practices affect the performance of Central Rift County governments.
Sp ally, the study sought to assess how budgeting, financial reporting, revenue
mobilisation, and public finance procurement affect the performance of these counties
in aspects such as pending bills and service delivery. Additionally, the research was
informed by theories such as agency theory, institutional theory, and stewardship
theory. The study employed a descriptive research design. The target population was
members that work within the finance department of Nakuru County. Specifically, the
researcher conducted a census of all the 80 employees working within the finance
section of the county governments. A research questionnaire was used to collect
primary data. A Cronbach alpha of 0.7 was used to determine the reliability of the
research instrument. Secondary data was collected from published materials from
both the county government and the govemnment agencies such as the Office of the
Auditor General. Data was analysed through the statistical package for social sciences
to provide inferential and descriptive statistics. Data was presented through table,
percentages and graphs. Ethical considerations such as avoidance of plagiarism and
research approval from relevant institutions will be considered in this study. From the
analysis the study revealed that the county government often use budget
implementation and monitoring to enhance performance. The study also revealed that
the government does regular budget reviews to improve compliance and overall
performance. The study concluded that there was a moderate positive and statistically
significant correlation between public budgeting on performance of central rift county
governments (r = 0.443; p < 0.05). Moreover, the study concluded that there was a
moderate positive and statistically significant correlation between public financial
reporting on the performance of central rift county governments (r = 0.441; p < 0.05).
Further, the study concluded that there was a moderate positive correlation existed
between public revenue mobilizations on the performance of central rift county
governments. (r = 04415 p < 0.05). Finally the study concluded that there was
moderate positive correlation existed between public finance procurement on the
performance of central rift county governments (r = 0.441; p < 0.05). Regarding
public budgeting the study recommended that the government ought to identify areas
of weakness in budgeting, when it comes to budgeting, identifying areas of weakness
helps the government to allocate resources in a useful and sustainable manner.
Regarding financial reporting, the study recommended that, there is need to improve
on information to evaluate performance in the government ministries and counties.
There is nced to promote accountability among the government ministries and
counties. There is need to fulfil citizens to know how resources are used among the
government ministries and counties. There is need to re align the budget processing
and reporting format in conformity with IPSAS reporting standards.
Description
A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment for the Award of Degree in Master of Business Administration (Finance) of Kenyatta University, November, 2023
Keywords
Public Financial Management Practices and Performance, County Governments, Kenya