Financial Management Practices and Financial Performance of Non-Commercial Semi-Autonomous Government Agencies in Social Protection Sector in Kenya
Loading...
Date
2023
Authors
Mutungi, Simon Katee
Mbuva, Geoffrey
Journal Title
Journal ISSN
Volume Title
Publisher
IAJEF
Abstract
Financial management practices are common
in most of the organizations, be it private or
state-owned entities and the conceptual
connection with financial performance
amongst many organizations still portray
controversial debate amongst scholars up to
date. The specific objectives of this study was
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
theories. Descriptive survey research
methodology was adopted. The three
hypotheses were tested at 95% confidence
level using multiple linear regressions
models. The population size was 19 noncommercial 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. Statistical Package for Social
Sciences (SPSS version 23.0) tool was used
for data analysis and the results therefrom
presented using statistical tools to provide
insight on the degree of cause effect between
the predictor and the dependent variable. It
was established that the influence of budget
management on financial performance of
Semi-Autonomous Government Agencies
under social protection sector in Kenya was
direct and statistically significant. The
financial controls also portrayed a positive
and statistically significant influence on
financial performance of Semi-Autonomous
Government Agencies under social protection
sector in Kenya and funding practices had a
positive significant influence on financial
performance of Semi-Autonomous
Government Agencies under social protection
sector 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 on 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
Article
Keywords
Financial performance, budget management, Financial controls, Funding practices, Semi-Autonomous Government Agencies (SAGAs)
Citation
Mutungi, S. K., Mbuva, G. (2023). Financial management practices and financial performance of non-commercial semi-autonomous government agencies in social protection sector in Kenya. International Academic Journal of Economics and Finance, 3(9), 437-452.