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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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    Effect Of Budgeting Practices On The Financial Performance Of Insurance Companies In Kenya
    (International Journal of Economics, 2017) Njogo, Michael; Ngumi, Daniel K
    Purpose: The general objective of this study was to establish the impact of budgeting practices on financial performance of insurance companies in Kenya. Methodology: The study applied descriptive research design. The population of the study comprised the 45 insurance and reinsurers companies that are were registered by the year 2010.The target sample was 50% of the population. A sample size of 50% is adequate for a descriptive study which has a small population. This implied that the sample was 23 insurance companies. Convenient sampling was used to obtain the 23 insurance companies. The study used secondary data collected from the Insurance Regulatory Authority, Association of Kenya Insurers and the respective insurance and reinsurers companies. The study used Statistical Package for Social Sciences (SPSS Version 17.0) and Stata version 13 to analyze the panel data. Descriptive statistics such as, mean and frequencies and inferential statistics (regression and correlation analysis) were used to perform data analysis. Results: The study found out that CAPEX variance and performance (ROI) are negatively and significant related (r=-0.1611, p=0.000), OPEX variance and performance (ROI) are negatively and significant related (r=-0.1267, p=0.000), human resource variance and performance (ROI) were negatively and significantly related (r=-0.1129, p=0.000) while income variance and performance (ROI) were also positively and significantly related (r=0.2136, p=0.000). From the findings, the study concluded that CAPEX variance has a negative and significant effect on performance (ROI). The study also concluded that OPEX variance has a negative and significant effect on performance (ROI). In addition, the study concluded that human resource variance has a negative and significant effect on performance (ROI) and lastly, the study concluded that income variance has a positive and significant effect on performance (ROI). Policy recommendation: Study recommended that insurance companies should focus on minimizing the variances. Secondly, the study recommends that insurance firms need to focus on maximizing income variance since it was found to have a positive effect on performance. This would ensure that they derive maximum returns from their operations.