School of Business & Public Management

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Start date: 2024Subject: search.filters.subject.Kenya

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    Forensic auditing and financial performance of Kenyan counties.
    (Stratford Peer Reviewed Journals & Books, 2025) Omucheyi, Rispah Khamonyi .; Abdul, Farida.; Kosgei,Margaret.
    County governments collect a small percentage of their own source revenue potential and the absorption rate of their budgets are low, this has slowed performance and service delivery. The study sought to find the effect of forensic auditing on the financial performance of the counties in Kenya. Data was collected from financial statements of 45 counties in Kenya in the custody of the controller of budgets for nine years from financial year 2014/2015 to 2022/2023. The study used a dynamic panel model to examine the relationship between forensic auditing and financial performance of all counties in Kenya and analyzed using R statistical tool. The findings showed that forensic auditing has a significant effect on financial performance of counties at first lag. The study concluded that forensic auditing is important and that each county should ensure that they invest in the forensic auditing function. The study recommends that county leadership, including governors, senators, members of the county assembly, and employees, should invest in forensic auditing. The leadership should ensure that accountants are well-trained in forensic auditing processes and consistently apply these skills. All accounting personnel should possess and practice forensic auditing skills. Additionally, county officials should provide supporting evidence for all activities conducted within or outside their counties to facilitate the forensic auditing process. County leadership should focus on spending strictly on budgeted projects, avoiding both overspending and underspending by monitoring ongoing and upcoming projects. Counties should also exhaust all revenue collection avenues and ensure that collected revenue is utilized for its intended purposes to meet collection targets. The study also recommends that the Institute of Certified Public Accountants of Kenya (ICPAK) should ensure its members are equipped with knowledge of forensic auditing by organizing regular training sessions and seminars to support the function. ICPAK should provide recommendations on accounting policies in counties to enhance the quality of financial statements. Furthermore, through ICPAK’s guidance, counties should establish fully functional audit departments and ensure the independence of audit committee members.
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    Operational Practices Influencing the Implementation of Budgets among Selected County Governments in Kenya
    (African Journal of Emerging Issues, 2026) Mwanzia, Mary; Rutto, Bill; Makau, Godfrey K.; Kabau, Tom
    Since the advent of devolution in 2013, Kenya has operated a two-tier government system where both national and county levels share a common public financial management architecture. However, a persistent performance gap exists: while the national government achieves an 80.76% absorption rate for development expenditure, county governments average only 34.4%. This study investigated the institutional, administrative, and managerial factors influencing budget implementation in selected county governments. The study evaluated the influence of four core operational practices finance, procurement, control, and ICT on budget implementation. Theoretically grounded in Principal-Agent Theory, Institutional Theory, and Public Choice Theory, the study employed an explanatory research design, supported by descriptive elements, within a pragmatist philosophical framework. The target population included 29,978 executive staff across six counties: Nakuru, Kericho, Narok, Baringo, Kajiado, and Uasin Gishu. Using stratified and purposive sampling, 217 high-level officials were selected, achieving a 79% response rate. Multiple Linear Regression analysis revealed that Operational Finance Practices were the only factor with statistically significant positive effect on budget implementation (β = 0.119, p < 0.05), while procurement, control, and ICT practices showed positive but insignificant relationships. The regression model explained 4.6% of variance in implementation outcomes. The study recommends strengthening regulatory compliance in financial operations, integrating procurement planning with budget objectives, proactive risk management, and full adoption of IFMIS and e-procurement tools. A legislative amendment to the Controller of Budget Act is proposed to mandate verifiable evidence of prior fund utilisation before new disbursements.
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    The Moderating Effect of Institutional Culture on The Relationship Between Operational Practices and Budget Implementation in Selected County Governments in Kenya
    (Stratford peer reviewed journals and book publishing, 2026) Mwanzia, Mary; Rutto, Bill; Makau, Godfrey K.; Kabau, Tom
    Development budget absorption remains inadequate despite robust legal frameworks such as the PFM Act (2012), the Procurement and Asset Disposal Act (2015), and the Controller of Budget Act (2016). This study examined the moderating effect of institutional culture on the relationship between operational practices and budget implementation in selected county governments in Kenya. Institutional culture is conceptualised as a behavioural and normative context distinct from formal operational practices, shaping how such practices are implemented and enforced. The study was grounded in Principal–Agent Theory, Institutional Theory, and Public Choice Theory. An explanatory research design, supported by descriptive elements, was adopted within a pragmatist philosophical framework. The target population comprised 29,978 county government personnel drawn from six counties: Nakuru County, Uasin Gishu County, Kericho County, Kajiado County, Narok County, and Baringo County. From this population, a purposive and stratified sample of 217 officials directly involved in budget execution was selected. Data were collected using a structured questionnaire and analysed using descriptive statistics and multiple regression analysis through the IBM SPSS Statistics package. The findings revealed that organisational culture had a positive moderating effect on the relationship between operational practices and budget implementation in the selected county governments. Organisational culture measured in terms of leadership, teamwork, and ethics significantly strengthened the influence of operational practices on budget implementation outcomes (β = 0.238, p = 0.000). The study highlights the oversight role of the Office of the Controller of Budget under Article 228 of the Constitution of Kenya, 2010 and the Controller of Budget Act, 2016.
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    Post-Devolution Household Healthcare Expenditures in Rural Kenya
    (European Scientific Journal, 2025) Omae, Peter K
    Introduction: Despite improvements in a country's income during the era of decentralization, catastrophic expenditures persist. This study aimed to establish the determinants of household healthcare expenditures in rural Kenya. Methods: The study utilized data from the Kenya Household Health Expenditure and Utilization Survey (2018). A multiple regression model was employed to estimate the impact of respective determinants on post devolution health expenditures in rural Kenya. The Ordinary Least Squares (OLS) estimation technique was adopted. Results: The gender of respondents, marital status, medical insurance, and chronic illness were found to be positively related to health expenditures, whereas education levels (primary, secondary, and higher levels) and wealth index (second and third wealth quintiles) were significant predictors but had a negative relationship with health expenditures. Recommendations: The study suggests promoting gender equality in healthcare access and implementing incentives and training programs to encourage men to practice preventive care, thereby reducing hospital visits. Additionally, the study recommends the creation and implementation of awareness programs across organizations, schools, and government agencies. Empowerment programs should be established to help the population lower hospital visits, consequently reducing healthcare expenditures. Furthermore, the government should increase the number of public health facilities to enhance access to subsidized services in rural areas.