RISK MANAGEMENT AND BUDGET IMPLEMENTATION IN COUNTY GOVERNMENTS IN KENYA
Abstract
Since devolution of the Kenya government in 2013, much has been done to improve the budgeting process in the counties but very little has been done to address issues of budget implementation in county governments. The office of the controller of budget in its oversight role which involves overseeing the implementation of budgets by national and county governments has pointed out a number of challenges when it comes to budget implementation by the county governments. This is because there is always low absorption of resources especially with development fund, at the same time, little support has been given to monitoring and evaluation of section. This indicates poor budget implementation. The present study therefore sought to establish the effect of risk management on budget implementation in county governments in Kenya. Goal setting theory, Systems theory and the Accounting theory guided the study. The descriptive research design was used in this study. The target population for this study was all the 47 Directors of Accounting Services in the 47 Counties in Kenya. A census survey was used to select the 47 Directors of Accounting Services to participate in the study. The study used primary data to accomplish the research objective. Results show that; risk management has a positive effect on budget implementation of the counties. This study’s findings may guide the government on allocation of resources and evaluate its relevance to the adherence to budgets in the counties through agencies such as Auditor General and Ministries. The findings may also increase efforts to improve understanding of expenditure control and budget implementation combined with increased flexibility for managers in return for stronger accountability for the results, so as to enable them give better service delivery. Future researchers may also use the findings from this study for future theory formulation.
Key words: Risk Management, Budget Implementation
CITATION: Ochieng’, V. A., & Oluoch, O. (2024). Risk management and budget implementation in county governments in Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1152 – 1171. http://dx.doi.org/10.61426/sjbcm.v11i2.2976
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2976
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