FINANCIAL PLANNING PRACTICES AND FINANCIAL PERFORMANCE OF PRIVATE HEALTH FACILITIES IN HOMA BAY COUNTY, KENYA
Abstract
The main objective of this research project was to study the influence financial planning practices on the financial performance of Private Health Facilities in Homa Bay County, Kenya. The researcher used budgeting, agency and stewardship theories to explain the independent variables. This study adopted a descriptive survey design. The target population comprised of 59 private health facilities with a sample size of 118 respondents. The study used purposive non-probability sampling technique. This study used primary (questionnaires) data. Data cleaning, coding and keying into the statistical package for social science (SPSS) software was then done. The data was analyzed using descriptive statistics such as graphs, tables, frequencies and mean, and inferential statistics such as regression and analysis of variance. Using Pearson correlation coefficient, the findings established a direct and positive relationship between Performance of Private Health Facilities and independent variables; budgeting practice, investment practice, inventory management and cash management. Further inference using multiple linear regressions showed a significant proportionate contribution of financial planning towards Performance of Private Health Facilities. This study observed that budgeting practice showed the greatest positive significant predictive power on Performance of Private Health Facilities in Nairobi County while investment practice had least positive significant predictive power. The study concluded that financial planning practices significantly contributed to the financial performance of Private Health Facilities in Homa Bay County, Kenya. In this regard, the study recommended that the management of private health facilities should focus on improving budget implementation procedures to ensure consistency and effectiveness. The study recommended that there is crucial need for management of each private health facility to develop a comprehensive investment strategy aligned with the facility's growth objectives and financial capabilities. Lastly, there is need to strengthen internal controls and oversight mechanisms to ensure compliance with accounting principles and budgetary guidelines.
Key Words: Budgeting Practice, Investment, Financial Planning, Financial Performance, Health Facilities
CITATION: Obuya, D. O., Mogwambo, V. A., & Juma, D. (2024). Financial planning practices and financial performance of private health facilities in Homa Bay County, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 520 – 540. http://dx.doi.org/10.61426/sjbcm.v11i2.2927
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2927
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