EFFECTIVENESS OF CORPORATE GOVERNANCE PRINCIPLES ON THE PUBLIC EXPENDITURE OF KIAMBU COUNTY GOVERNMENT IN KENYA
Abstract
This study examined the effect of corporate governance on public expenditure of Kiambu County Government in Kenya. This study was built on the underpinning theories, Stewardship Theory, Agency theory and institutional Theory. The study used descriptive research design. The target population of this study was 104 respondents comprising of internal auditors, accountants, finance officers, Directors of departments and Chief officers where Taro Yamane’s proportional sampling technique formula was used to get a sample size of 83 respondents. Primary data was collected from respondents directly using self- administered structured questionnaires. A pilot study was done in the county government of Nairobi City which neighbors Kiambu County, the study area. Content validity was used to check instrument validity while reliability of the research instruments was tested by the Cronbach alpha test, which is a measure of internal consistency. Data collected was edited, cleaned, and coded; and then SPSS version 24 was used to analyze the data. Descriptive statistical analysis was used to summarize data using frequencies, percentages and means while inferential statistics was computed; that is, Pearson correlation coefficient and multiple regression analysis was computed to find out whether there is correlation, linear and multiple relationship between the independent and dependent variables. The study found that majority of the respondent agreed that adoption of governance principles influences on the public expenditure of the County Government of Kiambu. The study also found that principle of accountability, transparency, integrity and fairness had significant influence on the public expenditure of the County Government of Kiambu. The study concluded that corporate governance principles significantly influenced the public expenditure of the County Government of Kiambu. The study recommended that Kiambu County executives offer themselves to appropriate external scrutiny concerning the management of county resources; that nomination of employees by the Kiambu County Executive should ensure that potential nominees are suitable to serve the county with expected integrity; that auditing of financial statements should be done regularly in the County Government of Kiambu; and that effective implementation of the principle of fairness should apply to increase the robust public expenditure of Kiambu County Government in Kenya.
Key Words: Accountability, Integrity, Transparency, fairness, expenditure
CITATION: Munga, E. M., Miroga, J., & Ngahu, S. (2022). Effectiveness of corporate governance principles on the public expenditure of Kiambu County Government in Kenya. The Strategic Journal of Business & Change Management, 9 (1), 818 – 837.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2222
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