School of Business
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Item Auditor characteristics and financial sustainability of county governments in Kenya(KCA University, 2025) Kiarie, Anthony N.Auditors play a central role in advancing financial sustainability within public sector institutions, particularly county governments. Their characteristics, including professional experience, independence, ethical orientation, and risk disposition, significantly shape the quality of financial reporting, accountability, and transparency, which are essential for sustainable fiscal management. This study investigated the effect of auditor characteristics on the financial sustainability of county governments in Kenya. Guided by legitimacy theory, stewardship theory, and inspired confidence theory, the research focused on four specific objectives: to assess the influence of auditors’ professional experience, independence, ethical orientation, and risk attitude on financial sustainability. A descriptive research design was employed, targeting all 47 counties in Kenya. A sample of 123 respondents was selected, and data were obtained through structured questionnaires utilizing a five-point Likert scale. Instrument reliability was verified through a pilot test, yielding a Cronbach’s alpha of 0.7. Data analysis was conducted using SPSS, applying both descriptive and inferential statistics, including multivariate regression and structural equation modeling. The findings established that auditors’ professional experience, independence, and ethical orientation exert a positive and statistically significant effect on financial sustainability, while auditors’ risk attitude demonstrated a negative but statistically insignificant effect. The study emphasizes the importance of strengthening auditors’ technical competencies, safeguarding their independence from political interference, and promoting high ethical standards as key strategies for enhancing accountability and fiscal discipline. It concludes that sustained investment in auditor capacity-building, coupled with institutional reforms to support professional autonomy and integrity, is vital for improving governance and ensuring long-term financial sustainability within devolved government units.Item Institutional governance and financial sustainability of water resources authority basin areas in Kenya(KCA University, 2025) Nyaoro, Rodgers O.Public sector’s financial sustainability is crucial for ensuring that government institutions can meet current and future obligations without jeopardizing their ability to provide essential public services. Notwithstanding the fundamental significance of financial sustainability, the Water Resources Authority basin areas highlight an ongoing deficiency in this regard. A primary challenge for WRA basin areas in Kenya financial sustainability is not limited to inconsistent funding. Although empirical literature consistently underscored institutional governance as one of the most critical strategies for driving financial sustainability, positioning it at the core of organizational success and long-term viability, most of these studies had contextual gaps, conceptual gaps and methodological gaps. This study sought to assess institutional governance as it related to financial sustainability in the institution. The specific objectives were to find out the effect of accountability, transparency, stakeholder participation, and decentralization on the financial sustainability of WRA basin areas in Kenya. The theories that anchored the study were the Institutional Theory, Stakeholder Theory, and the Priority Theory of Sustainable Finance. In the research, a descriptive research design was adopted, targeting the six Water Resources Authority basin areas in Kenya. The study used a census approach with a sample size of 160 respondents, from whom primary data was gathered through a carefully crafted questionnaire, administered using a drop-and-pick approach. Secondary data was collected using a research designed data collection tool. The questionnaire was tested for validity through content validity testing, and for reliability using Cronbach’s alpha. Quantitative data was analyzed to yield descriptive statistics. Partial Least Squares Structural Equation Modelling was used to construct and validate a conceptual model focused on assessing the financial sustainability of WRA basin areas in Kenya. The study concluded that each of; accountability (β=0.2377; p<0.01), transparency (β=0.2677; p= 0.004), stakeholder participation (β=0.1567; p=0.002) and decentralization ((β=0.5114, p<0.01), has significant and positive effect on financial sustainability of WRA basin areas in Kenya. The study recommends that WRA basin areas in Kenya should strengthen accountability and improve transparency mechanisms and communication so as to build greater stakeholder trust and clarity. They should improve stakeholder participation by fostering inclusiveness, trust, and better-informed decision-making. They should review internal governance and empower lower-level sub basins to make them more meaningfully so as to enhance operational flexibility.