Influence of principals’ financial competencies on financial performance of public secondary schools in Tharaka south sub-county, Tharaka Nithi county, Kenya

Abstract

Financial support plays a crucial role in ensuring the success of various activities within an educational institution. A well-functioning funding system is essential for the smooth operation of a secondary school. It should include efficient administrative structures staffed by competent individuals such as bursars and accounts clerks. Despite efforts by Kenya Education Management Institute (KEMI) to train secondary school principals in financial management skills, some principals still engage in mismanagement of funds. This study aims to examine how the financial competencies of principals influence the financial performance of public secondary schools in Tharaka South Sub-county, Tharaka Nithi County. The objectives were; to examine the influence of principals’ financial budgeting, procurement, recording and auditing competencies on financial performance in public secondary schools. The study was guided by the finance management theory and the efficiency theory. The study used mixed methodology and thus, applied concurrent triangulation research design. The target population comprised 28 principals, 140 department heads, 28 bursars, 28 Chairs of BoM and two County/Sub-county Auditors totaling 226 respondents from which a sample size of 144 respondents was determine using Yamane’s Formula. Questionnaires were used to collect data from HoDs whereas interviews were applied to gather information from principals, Chairs of BoM, bursars as well as County and Sub-county Auditors. Piloting of instruments was done in Tharaka South Sub-county with 10% of the main sample size, thus 47 participants. Qualitative data were analyzed thematically based on study objectives and presented in narrative form. Quantitative data were analyzed using descriptively using frequencies and percentages and inferentially using regression analysis with the help of Statistical Package for Social Sciences (SPSS) version 25 and presented using tables and charts. The study found that financial performance in many public secondary schools in Tharaka South Sub-county is still characterized many reported instances of financial misappropriation, wastage, pilferage and overall financial inefficiency. In other words, financial mismanagement is a widespread challenge in public secondary schools. This is attributed to ineffective financial management competencies of principals. These shortcomings are evident in inadequate budgeting, poor procurement practices, insufficient record-keeping, and a lack of proper auditing skills. Thus, the study recommends that the Ministry of Education should undertake targeted financial training and capacity building programmes focusing on budgeting, procurement, financial record-keeping as well as auditing.