EFFECTIVENESS OF FINANCIAL MANAGEMENT PRACTICES ON PUBLIC SECTOR REFORMS IN KENYA RURAL ROADS AUTHORITY, KENYA
Abstract
This research focused on the evaluation of the effectiveness of financial management practices in Kenya Rural Roads Authority (KeRRA) on public sector reforms. The main objective of the study was to establish the effectiveness of financial management practices on public sector reforms taking a case study of KeRRA. The specific objectives of the study were to establish the effectiveness of budgeting on public sector reforms in KeRRA, to examine the effectiveness of procurement laws on public sector reforms in KeRRA, to establish the effects of effectiveness of IFMIS – Integrated Financial Management Information Systems on public sector reforms and to determine the effectiveness of work plans on public sector reforms in KeRRA. The study used descriptive research design with a target population of 530 employees; a sample of 222 was selected using simple random sampling technique. The research used both primary and secondary data. Primary data was collected using questionnaires. Secondary data was obtained from reports and archives. Pilot test was conducted to enhance the instrument validity and reliability. Data collection involved a self - administered questionnaire through drop and picks them later. Descriptive analysis was applied which included mean, frequencies and percentages using assistance of computer packages especially Statistical Package for Social Sciences (SPSS) version 20 to communicate research findings.The study also used a regression model and correlation to study the relationship between factors. From the model, the factors that significantly influenced public sector reforms included Budgeting process (t = 2.189, p = .032), Procurement process (t = 1.913, p = .059), and IFIMIS Implementation (t = -3.847, p = .001). Work plan implementation (t = .979, p = .331) did not have any significant influence on public sector reforms. KeRRA should include financial reforms as part of their performance contracts target and should ensure that they implement the reforms to their logical conclusion in order to achieve the reforms intended objectives and consequently improve on its performance.
JEL: H61, H72, H83, B26
Article visualizations:
Keywords
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2).
Demaestri, E., & Guerrero, F. (2003). The Rationale for Integrating Financial Supervision in Latin America and the Caribbean. Sustainable Development Department. Technical Papers Series. IFM-135. Inter-American Development Bank.
Fox, W. and Meyer, I. 1995. Public Administration Dictionary. Juta & Co Ltd, Cape Town.
Gakuru M. & Mungania A., (2016). Budgetary Allocation and the Success of Public Sector Management in Central Province, Kenya. European Journal of Business and Social Sciences, Vol.4, No. 10
Gathuya M. P. (2010). A survey of factors that influence local authorities’ financial management: the case of City Council of Nairobi. Unpublished MBA Thesis, University of Nairobi.
Isahakia, M. (2010), “Preface”, In OPM/PSTD (Office of the Prime Minister/Public Sector Transformation Department), Public Sector Transformation Strategy: From Reform to Transformation 2010-14. Nairobi: OPM/PSTD.
Kenya Law 2010. The Constitution of Kenya 2010
Karanja, J. & Nyambura, E. (2014). Factors Influencing Implementation of Integrated Financial Management Information System in Kenya Government Ministries. Research Journal of Finance and Accounting, Vol 5, No (7). pp 10-17
Karanja, N. & Kiilu, R. N. (2014) Effect of public financial management reforms in the effective management of public funds in Kenya: a case study of the National Treasury. European Journal of Business Management Vol. 2, Issue 1.
McThomas, D. 2003. Financial management skills for middle level managers of correctional services in South Africa. Florida, Roodepoort: Technikon SA. (MTech Dissertation).
Nwezeaku, N. C. (2010). The impact of public sector financial management on the economies of Sub-Saharan Africa. International research journal of finance and economics
Pandey, I. M. (2005). Financial Management. 9th ed., Vikas Publishing House, New Delhi
Pretorius, C., & Pretorius, N. (2009). Review of public financial management reforms literature. London: DFID.
Preeti, J. (2012). Accounting reforms for good governance. Government of India, Ministry of Railways, IRAS Day.
Saunders, M., Lewis A., and Thornhills A. (2009). Research Methods for Business Students (5thed.). Pearson Education Limited, Edinburgh Gate, Harlow.
Stein, H. & Rosefieldein, S. (2005). Introduction to issues in finance, corporate control, and growth: Lessons from developing and transitional economies. Economic Journal, 31(2)
DOI: http://dx.doi.org/10.46827/ejefr.v0i0.281
Refbacks
- There are currently no refbacks.
Copyright (c) 2018 Simon Kibicho Wahome, Rita Kagwiria, Mohamed Shano
This work is licensed under a Creative Commons Attribution 4.0 International License.
The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.
Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.
This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.
