Integrated Financial Management Information System and Performance of Government Ministries in Kenya
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Date
2024-09
Authors
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Journal ISSN
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Publisher
Kenyatta University
Abstract
The adoption of an integrated financial management information system (IFMIS) has been promoted as Kenya’s best course of action for explaining the consequences of government embezzlements that have plagued the government’s operations since independence. Adopting the Integrated Financial Management Information System (IFMIS) helps streamline financial processes, improve management and sourcing practices within the government, and provide standardized, accurate financial statements in real-time. The system seeks to reduce instances of corruption, fraud, and other unethical government behaviour by promoting accountability and transparency. However, despite its implementation, instances of improper use of public funds and subpar performance by ministries persist. This study investigates whether the adoption of IFMIS has enhanced the performance of government ministries in Kenya. Specifically, it examines the effects of staff competence, resource allocation, internal control, and system quality within IFMIS on the operational and financial performance of ministries, measured in terms of efficiency, accountability, and transparency in public resource management. The study is grounded in the Technological Acceptance Theory, Systems Theory, and Resource-Based View Theory. A descriptive research design was used, targeting six selected government ministries. Stratified random sampling gathered data from 384 participants, including operational staff, middle-level managers, and top executives. Data was collected primarily through questionnaires and analyzed using descriptive and inferential statistics. All ethical considerations were followed. The findings revealed that staff competence in IFMIS significantly and positively affects the performance of government ministries. Internal control in IFMIS, while insignificant, still positively impacts performance. Additionally, system quality in IFMIS significantly enhances ministry performance. The study concludes that IFMIS has the potential to improve the efficiency, transparency, and accountability of government ministries in Kenya. It recommends that ministries prioritize training programs to enhance staff competence in areas such as financial management, technical skills, and leadership to boost overall performance.
Description
A Research Project Submitted to the School of Law, Arts and Social Sciences in Partial Fulfillment of the Requirements for the Award of a Master of Public Policy and Administration Degree at Kenyatta University, September 2024.
Supervisor
Wilson Muna