Effect of Public Financial Management Practices on Performance in Kericho County Government, Kenya: A Critical Review
- Mr. Patrick Mutai Cheruiyot, Mr. Julius Robert Oketch, Mr. Gregory S. Namusonge, Mr. Maurice Sakwa
- Dec 2017
- International Journal of Education and Research
- International
This paper examines the extent to which public financial management practices influence financial performance in Kenya. The Constitution of Kenya, 2010 and the Public Finance Management (PFM) Act, 2012 have anchored public finance on the principles of accountability and clear fiscal reporting. Chapter 12 of PFM Act addresses the financing of the functions of the two levels of Government towards an equitable society based on openness, accountability and public participation in financial matters. The National and County governments have the responsibility of ensuring accountability in resource use. The involvement of the Auditor General, the Controller of the Budget, and the National Treasury result in a continuous process of monitoring of resource use for optimal performance.
The central aim behind public financial performance is systematic and continuous evaluation of two levels of government so as to improve future performance, on the one hand, and promote institutional learning and consequently, improve the quality of organizational decision making, on the other. Therefore, this article develops a conceptual framework that analyses the relationship between financial management practices and financial performance in Kenya with particular emphasis to county government.
