Factors Influencing The Effectiveness Of Program Based Budgeting In The Kenyan Public Sector

Abstract

Traditionally, line item budgets have been the predominant method of presenting Government budgets. Some budget reformers has criticized Line item budgeting for holding public agencies accountable for only for what they spend and not for what has been achieved from the expenditure and therefore recommended the adoption of Programme Based Budgeting. The purpose of this research was to assess the factors influencing the effectiveness of program based budgeting in Kenyan public sector in terms of organisation structure, transparency and staff capacity. The study was conducted in 51 government ministries, departments and agencies with 102 respondents. The researcher used the questionnaire in the collection of data. The data was analyzed using Statistical Packages for Social Sciences (SPSS) and presented in tables. Discussions for the study were undertaken using descriptive and inferential statistics. The findings of the study concluded that organization structure, transparency and staff capacity are significantly and positively related to the effectiveness of programme based budgeting in the Kenyan public sector.