Budgetary process and financial performance of murang’a county government, kenya
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Date
2017
Authors
Kibunja, Daniel Momanyi
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
ABSTRACT
The purpose of this study was to investigate the relationship between Budgetary Process and
Financial Performance of Murang’a County Government in Kenya. The specific objectives of
the study were: to determine the effect of budgetary planning, implementation, monitoring
and evaluation on financial performance of Murang’a County Government. The study of their
relationship was important since it enabled decision makers to understand the basis of their
governance decisions. There is a need for proactive efforts to maintain the county existing
investments while creating new ones and increasing the county’s bargaining power in the
National economy. This can only be achieved by motivating the County management and
public through strict budget process adherence and evaluation. To meet the broad objective
the study derived both Primary and Secondary data of the Murang’a County audited financial
statements and reports for financial years 2013/2014 and 2014/2015. The study design was
an explanatory non experimental descriptive research design. The target population was
2,074 County staff members in the 13 Operational departments and through systematic
sampling the sample size composed 83 staff members was established. The main chosen
respondents in the study were preferred due to the good availability of budgetary process
information: the County financial performance is the barometer of the County’s Public
Finance Management and a major stimulant of a country’s economic growth to support the
economic pillar of Vision 2030. The study employed quantitative data analysis technique:
descriptive and inferential statistics analysis using multiple regression was done using SPSS
software. Analysed data was reported using frequency distributions, percentages and charts.
The study found that though financial management had been decentralized to departments,
there were inefficiencies in regards to technology adoption, controls, oversight and timely
supplementary budgeting. Budget monitoring aspects reviewed revealed weaknesses in terms
of internal controls including auditing, stakeholder oversight and compliance to regulatory
frameworks. In the same line, budget evaluation processes were not very effective since
county financial reports were not timely, with oversight being poor. The study thus concluded
that the budgetary process involving planning, implementation, monitoring and evaluation
had a relationship and significantly influenced financial performance of the county
government. The study recommended that the county government should review its policy on
public participation in the budget process, budget monitoring and the enhancement of
capacity building programmes. Further studies should be undertaken to establish; the factors
affecting the adoption of IFMIS for financial management in county governments and the
influence Members of County Assembly competence in budgetary process and financial of
county governments.
Description
A project submitted in partial fulfillment of the requirements for the award of the degree of masters of business administration, school of business. Kenyatta University.2017