Institutional Capacity and Implementation of Financial Management Regulatory Framework in Devolved Government of Embu County,Kenya
Loading...
Date
2024-01
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Between 2013 and 2022, the county government of Embu faced persistent challenges in public
resource management, leading to unfavorable audit opinions despite guidance from the Public
Finance Management. Reports from the auditor general (2017, 2019, 2021), the controller of
the budget (2019, 2020, 2022), and internal financial documents highlighted issues such as
inefficiency, poor budget management obstructing development, low absorption capacity, and
misalignment with the integrated development plan. This study investigated the effect of
revenue, information sharing, budgeting, and expenditure management capacities on the
implementation of the Financial Management Regulatory Framework in Embu County, Kenya.
The study is anchored on the agency theory, institutional theory and resource dependency
theory. Descriptive research design was adopted for this study, focusing intently on Embu
County as the epicenter of the investigation. The research participants comprised 65 senior
administrators well-versed in the nuances of the Public Finance Act of 2012. Due to the
manageable size of the target population, a census study approach was adopted, ensuring a
comprehensive understanding of the subject matter. Both primary and secondary data sources
were tapped into. Primary data collection methods included structured questionnaires
meticulously designed to extract specific insights, in-depth interviews for nuanced perspectives,
and credible reports from authoritative sources. Secondary data, vital for contextualizing the
primary findings, were sourced from a plethora of academic books, scholarly journals, and
previously conducted research studies. The collected data was analyzed using a combination of
descriptive statistics portrayed by percentages, mean scores, median charts and graphs. The
inferential statistical analyses used is done through Anova, regression and R-squared. The study
unearthed critical insights into the existing financial management capacities within Embu
County. The findings collectively underscore the integral role of various capacities - revenue
management, information sharing, budget making, and expenditure management - in ensuring
robust financial accountability. Through examination of these capacities, the study illuminates
the interconnections between efficient financial practices and regulatory compliance. The
conclusion drawn from these findings emphasized the pressing need for strategic interventions
within Embu County's financial management system. The study made the following
recommendations: To enhance revenue management, the county was advised to overhaul its
revenue collection systems, employing innovative technologies for efficiency and accuracy.
Information sharing mechanisms were recommended to be streamlined, ensuring real-time
communication between various governmental bodies and departments. Participatory
budgeting processes, involving both public and administrative stakeholders, were
recommended to instill transparency and community-driven decision-making. Furthermore,
robust internal control systems for expenditure management were deemed imperative,
necessitating the implementation of stringent audit protocols and oversight measures.
Description
A Research Project Submitted to the Department of Public Policy and Administration in the School of Law, Social Sciences and Humanities for the Partial Fulfillment for the Award of Master of Public Policy and Administration of Kenyatta University, January 2024.