ANALYSIS OF ABSORPTION RATES ON FINANCIAL GROWTH FOR COUNTY GOVERNMENTS IN KENYA: A CASE OF COAST REGION COUNTY GOVERNMENTS
Abstract
The purpose of this study was to determine the analysis of absorption rates on financial growth of Coast region county governments. The study used cross sectional research design. The target population for the study was employees of County Government of Mombasa. The study used secondary data from County Government financial statements for the year 2018/2019 which were available from the website of the Office of Controller of Budget (OCOB). Population and size per county data was retrieved from the Kenya National Bureau of Statistics (KNBS) and Commission for Revenue Allocation (CRA) websites respectively. Statistical package for social sciences (SPSS) was used for inferential and descriptive statistics data analysis. Data collected was organized and analyzed through descriptive statistics with the help of SPSS version 26 and the presentation was done using tables. Descriptive analysis showed that respondents agreed to the statement that budgeting procedures have caused delays in decision making in the County Government. The study results also revealed that respondents agreed to the statement that budgeting procedures adds value into compliance to set procedures and that without budgeting procedures, it would be difficult to come up with a financial growth plan and that the county government had attained proper management of revenue of all projects planned in each financial year within the stipulated time frame. The study concluded that budgeting has a linear relationship with financial growth of county governments. Further, the study concluded that budgeting procedures have caused delays in decision making in the County Government. The study concluded that the value is added by budgeting procedures in relation to set procedures compliance. Also devoid of budgeting procedures, financial growth plan would be difficult to be developed. It was concluded that county government had attained proper management of revenue of all projects planned. The study recommended that the county government should pass legislations to facilitate availability of central allocations of source of funds since it was revealed to affect financial growth plan of the county government. The public finance management function should be centralized to facilitate financial growth planning and grants/aids money should be administered as per the country constitution. The county staff should be informed on borrowings regulations in regard to the county budgeting.
Key Words: Budgeting, Financial Resources, Funds Sourcing, Funds Control
CITATION: Kabugu, J. M., & Wamiori, G. (2022). Analysis of absorption rates on financial growth for county governments in Kenya: A case of Coast region county governments. The Strategic Journal of Business & Change Management, 9 (4), 84 - 98.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2393
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