DETERMINANTS OF PRUDENT FINANCIAL MANAGEMENT OF NATIONAL GOVERNMENT CONSTITUENCY DEVELOPMENT FUND IN TURBO CONSTITUENCY, KENYA
Abstract
Lack of adequate empirical data on what actually should be done to effect prudent financial management of CDF prompted this study to investigate the determinants of prudent financial management of Turbo National Government Constituency Development Fund, Uasin Gishu County, Kenya. The study used descriptive research design and targeted 219 respondents comprising of project management committee, CDF committee members and technical officers of the Turbo CDF; from where a sample size of 142 respondents was drawn using Taro Yamane’s proportional sampling technique formula. Structured questionnaires were used to collect primary data. SPSS version 24 data analysis computer software was used to compute statistical data; whereby collected data was cleaned, coded and transformed to allow regression analysis. Descriptive analysis such as frequencies, means, standard deviation were used to summarize data into meaningful form; whereas inferential statistics assessed the nature and strength of the correlations, direct and multiple relationships. Analyzed data was presented in tables. From 142 questionnaires that were dispatched for data collection, 107 were returned when dully filled showing a response rate of 75.35% which was good for generalizability of research findings to a wider population. Both descriptive and inferential statistics showed that all the conceptualized independent variables; financial literacy, procurement process, fund disbursement and financial audit process significantly influenced prudent financial management of Turbo National Government Constituency Development Fund, Uasin Gishu County, Kenya. The study concluded that financial literacy is a significant predictor of prudent financial management since it helps CDF fund managers understand basic accounting and auditing standards as key aspects of prudent financial management of public funds; two, timely fund disbursement depict prudent financial management of CDF funds so as to fast track fund utilization in CDF projects. The study recommends that one, all CDF managers, committee members and technical officers should undergo regular financial training so as understand prudent financial management of CDF and two, there should be independent and transparent financial audit process to ensure accountability and efficient utilization of National Government Constituency Development Funds.
Key Words: Financial Literacy, Procurement Process, Fund Disbursement, Financial Audit Process
CITATION: Kipkemei, K., & Miroga, J. (2019). Determinants of prudent financial management of national government Constituency Development Fund in Turbo Constituency, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 161 – 177.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1379
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