EFFECTIVENESS OF FINANCIAL MANAGEMENT PRACTICES ON PUBLIC SECTOR REFORMS IN KENYA RURAL ROADS AUTHORITY, KENYA

Simon Kibicho Wahome, Rita Kagwiria, Mohamed Shano

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

 

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Keywords


budget process, public sector reforms, work plans, IFMIS, financial management practices

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