Abstract:
The pursuit of Public Financial Management Reforms (PFMR) is centered on, among other functions, enhancing transparency in governance, increasing prudential allocation of financial capital, accountability in financial management, separating policy and management functions. In Kenya, the PFMRs seek to ensure both fiscal efficiency and discipline in the use of public finances thereby enhancing public service efficiency and safeguarding available resources to be used in the best interest of the people. The objective of the study was to examine the influence of IFMIS Re-Engineering, parliamentary oversight, fiscal decentralization, active public participation on budget implementation by Kenyan city counties. The study was based on modern portfolio theory, agency theory, resource-based theory and stakeholder theory and relied on an expost-facto research design with a survey method to determine the relationships between the study variables. The population of the study was 55 comprising of staff members from budget office, directorate of economic planning, IFMIS departments and accountants from all sectoral departments of each of the three city counties under study. A sample of 36 respondents was selected proportionately from the three city counties. Structured questionnaires and interview schedules used to collect the data were self administered. The returned questionnaires were then cleaned, coded and scrutinized thoroughly for completeness. The researcher collected data from the treasuries, directorates of economic planning, budget offices, IFMIS departments and sectoral departments of Nairobi city county, Mombasa city county and Kisumu city county respectively. The study also relied on interview schedules to obtain first-hand data from IFMIS department in each of the counties undr study. The resultant data was analyzed using SPSS version 24. Statistical measures such as means, percentages and standard deviation were used to interpret the data. Both linear regression analysis and a Spearman correlation analysis were done to show the relationships between the study variables and the findings presented in tables. The study revealed strong positive and statistically significant correlation between fiscal decentralization, parliamentary oversight and public participation with budget implementation while IFMIS re-engineering had a negative and statistically insignificant correlation with budget execution. The study recommended further research on IFMIS to come up with a more effective system or consideration of a complete overhaul for better system for public financial management. Studies should also be done to unearth the interrelation between adoption of PFMR and performance of counties in rural areas in Kenya.
