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European Journal of Management and Marketing Studies ISSN: 2501 - 9988 ISSN-L: 2501 - 9988 Available on-line at: http://www.oapub.org/soc Volume 2 │ Issue 4 │ 2017 doi: 10.5281/zenodo.1095206 PUBLIC PARTICIPATION AND THE BUDGETING PROCESS WITHIN THE COUNTY GOVERNMENT OF NANDI, KENYA Elias Kipyego1, Joshua Wanjare2 1 2 University of Nairobi, Kenya Dr., University of Nairobi, Kenya Abstract: Citizen participation is one of the national values in Kenya and is also a principle of public service. This study examined the key factors affecting public participation in budgeting process in the County Government of Nandi in Kenya. The study also sought to identify the key socio-cultural factors affecting public participation in the budgeting process in Nandi County. The study adopted a descriptive survey design targeting Community Based Organizations’ C”Os members who are residents of Nandi County, CBO officials and officials from the Treasury and Economic Planning department in the County Government of Nandi. Stratified random sampling technique was used to select members of Community Based Organizations who were administered with structured questionnaires. The study found out that public participation enhances the quality of the budgeting process. The study also found out that stakeholders’ involvement in budgeting process enhances accountability and transparency. Pearson correlation test found that there was a statistically significant positive relationship (R = 0.513) between stakeholder’s involvement and budgeting process since p < . p= . . It was also found that socio-cultural factors could also affect public participation in the budgeting process and using Pearson correlation test to determine the effect of socio-cultural factors on participatory budgeting process, the study found a weak positive relationship (R = 0.203) between Socio-cultural factors and budgeting process since p < 0.05 (p = 0.203). Keywords: public participation; budgeting process; public finance; accountability and transparency; Nandi County JEL: H41, H61, H70 Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 55 Elias Kipyego, Joshua Wanjare PUBLIC PARTICIPATION AND THE BUDGETING PROCESS WITHIN THE COUNTY GOVERNMENT OF NANDI, KENYA 1. Introduction Public participation and accountability in public finance in Kenya can be traced back to Kenya’s decentralization initiatives. These initiatives included the District Focus for Rural development in 1980s, and the proliferation of decentralized funds in Kenya in the late 1990s (Oyugi and Kibua, 2006). The Constituency Development Fund (CDF) Act (2003) provided for participation of communities through project identification at the locational and constituency levels. The CDF Act (2003) has since been amended to align its mandate to the Constitution of Kenya (CoK) (2010). Article 10 of the CoK (2010) made citizen participation a central part of Kenya’s governance system. “dditionally, Article 174(c) of the Constitution of Kenya (2010) provides that the object of devolution is to; enhance the participation of people in the exercise of the powers of the State and in making decisions affecting them. With the promulgation of the CoK (2010), the government continued to uphold the principal of public participation by anchoring the following legislative framework on public involvement in the governance process; the County Government Act (CGA) (2012), the Urban Areas and Cities Act (2011) and the Public Finance Management Act (2012). The provisions of these legislations empower the public to participate in planning and decision making processes in their respective local governments. Despite the provisions of these three legislations, most of the county governments and more specifically Nandi county has failed to effectively uphold the principle of public participation in the fiscal planning and in particular in the budgetary process (Kenya National Audit Report for the financial year 2014/2015). Similar complaints were also raised by the Civil Society Organization (CBO) through its petition dated 6th August 2015 to the Senate. This study therefore sought to identify the factors affecting public participation in the budgeting process in Nandi County. It sought to do so by examining the budgeting process with a view to identifying inherent weaknesses in the public participation process. Public participation is a process through which citizens voice their input in public policy decisions (Malanilo, 2014; Roberts, 2002). Even though public participation and citizen involvement are used interchangeably, they are a means to ensure that citizens have a direct voice in public decisions (Irvin et al., 2004; Russell, 1982).). Globally, public participation in budgeting process has become an institutional procedure, being adopted by the European Union (EU) member countries and the Asian countries as a means of promoting transparency and accountability in fiscal policy/budgeting processes (Allegretti and Carsten, 2004). According to the results of the latest Open Budget Survey (OBS) conducted by the International Budget European Journal of Management and Marketing Studies - Volume 2 │ Issue 4 │ 2017 56 Elias Kipyego, Joshua Wanjare PUBLIC PARTICIPATION AND THE BUDGETING PROCESS WITHIN THE COUNTY GOVERNMENT OF NANDI, KENYA Partnership (IBP) (2003), it was found out that, out of one hundred countries surveyed, Korea emerged the best as the country that provides extensive opportunities for public engagement” (Gomez, Joel, & Isaac 2005). In the year 2003, president Moo Hyun Roh took office and his emphasis was on fiscal transparency and public participation (Gomez, Joel, & Isaac 2005). His administration introduced significant public financial management (PFM) mechanisms, including a medium term expenditure framework (MTEF), performance-based budgeting and integrated financial management information system (IFMIS) (Ackerman, 2005). In some jurisdictions, the right to public participation is enshrined in law, whereas in others it is conceived as human right, or as a manifestation of the right to freedom of association and assembly (Malena and Janmehay, 2004). Additionally, in other jurisdictions such as the Netherlands, Germany, Denmark and Sweden, public participation have been incorporated into their legal framework and made a seamless system of information sharing (Gomez, Joel and Isaac, 2005). In democratic societies like the US, public participation have been incorporated into their laws, including, the right to petition which was made part of the first Amendment of the US constitution since 1791 (World Bank, 2003). Similar policies on public participation are evident in the urban planning where participatory structures have been in place for the last thirty years (Bay, (2011). More recently in the New Zealand, numerous laws (e.g. health, local government, environmental management) require government officials to "consult" those affected by a matter and take their views into consideration when making decisions (World Bank (2005). In the republic of South Africa, public participation is being managed around one principal philosophy of modernization, which proposed a top-down approach to development (Bekink, 2006). The Constitution of South Africa (1996) stresses the need for accessible services, promotion of sustainable economic growth, and equity in citizen participation in development initiatives. The republic of South “frica introduced the principle of ”atho-pele through the Municipal Financial Management Act (2003), which was aimed at putting the interest of the citizens before everything else. The South African Constitution (1996) further requires local authorities to encourage citizen participation in policy-making and other local government activities, such as budgeting. For viewing / downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJMMS/article/view/278 European Journal of Management and Marketing Studies - Volume 2 │ Issue 4 │ 2017 57