DETERMINANTS OF BUDGET IMPLEMENTATION IN NON-GOVERNMENTAL ORGANISATIONS OPERATING IN KAKAMEGA COUNTY KENYA
Abstract
Effective budget is an important aspect of all organizations today. NGOs that use their budget effectively have been found to receive large funding from donors and thus undertake development programs that alleviate human suffering. This study set to establish the determinants of budget implementation in non-governmental organizations in Kakamega County. The study focused on determinants as budget participation, budget control and donor financing regulations. In a bid to effectively achieve these objectives, the study adopted a descriptive survey design based on samples drawn from across the 40 registered NGOs in Kakamega County Kenya.The unit of observation comprised of 160 senior management staff, 80 Finance staffs and 172 programme staff of the 40 NGOs. Therefore, the target population of this study was total 412 respondents. A two-stage sampling technique was adopted where stratified random sampling was used to select the category of staff amongst the NGOs after which simple random sampling was used to select respondents within the staff categories. The study used Krejcie& Morgan table,(1970) to calculate the sample size which was 201 respondents. Data was collected by use of structured questionnaires which were self-administered. Data was analyzed by use of both inferential and descriptive statistics using SPSS version 25. Result of multiple regressions revealed that the determinants jointly and independently influenced effective budget implementation amongst NGOs in Kakamega County, Kenya. Jointly the three constructs namely participative budgeting, budget control and donor financing regulations contributed 76.7 % of the variation in budget implementation (R Square = 0.767). The t values of the constructs were also positively and significantly related to effective budget implementation where P<0.05. All these together led to the rejection of the null hypothesis. This implies that the management of NGOs should securing stakeholder participation besides investing in budget control and adherence to financing regulations of NGOs through its policy framework which translate to effective budget implementation.
Key Words: Participative budgeting, Donor Regulations, Budget control and Budget Implementation
CITATION: Mudeheli, F. G., Miroga, J., & Onyango, R. O. (2020). Determinants of budget implementation in non-governmental organisations operating in Kakamega County Kenya. The Strategic Journal of Business & Change Management, 7(4), 50 – 71.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1775
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