Effect Of Budgetary Process On Budget Performance In County Governments In Kenya

Abstract

Budget is a very powerful tool in management and serves as a tool for controlling the use of limited financial resources in the accomplishment of organizational goals. The study sought to determine the effect of budgetary process on budget performance in county governments in Kenya. The specific objectives of the study were budgetary planning, budgetary implementation and budgetary monitoring. The study is of great significance to the management of county governments, policy makers such as top management, budget officers, internal auditors and accountants in both the national government and the county governments in Kenya, and scholars in the field of finance and accountancy as the study is important in adding to scholarly work of the existing body of knowledge The study employed a descriptive survey research design to establish the effect of budgetary controls on budget performance in county governments in Kenya. The study employed both quantitative data and qualitative data. Primary data used was collected using questionnaire while secondary data was collected using data collection sheet. Judgmental sampling was used in determining the sample size. The population of the study were the heads of budget departments of the forty-seven counties in Kenya with a sample of forty-seven budget officers. Multiple regression model was used to model the cross-sectional data employed. STATA software was used to analyze the data collected. The study findings were presented using graphs, tables and figures. The study concludes that budgetary process has a positive significant effect on budget performance in the county governments in Kenya. The study recommends that county governments should that budgetary planning policy documents and regulatory frameworks are in place. The study further recommends staff to be engaged in continuous professional development programs and ensure IFMIS are trained and also that internal audit reports, controller of budget reports and auditor general reports are effectively and timely prepared.