Thesis:

Effect of budgetary control measures on financial performance of the county government of Kajiado

The key factor for the successful implementation of budgeting is the unequivocal support from management and leadership. Without this support, the entire system is at risk of failure. It is crucial to follow up budgeting with effective control measures. The 2018 audited financial report from the office of the auditor general revealed a 13% variation in Kajiado county government's approved budgets and expenditures, and that actual expenses exceeded approved budgets by 38%, indicating poor resource utilization and failure to achieve development targets. The purpose of this study is to examine the effect of budgetary control measures on financial performance of the county government of Kajiado. The study’s objectives are to: - assess the effect of budget planning, evaluate the effect of budget coordination and determine the effect of budget evaluation on financial performance of the county government of Kajiado. This study is anchored on the allocation of resource theory, expenditure theory and progressive theory of public expenditures. The study used a descriptive research design. The target population of the study were the 4,017 employees in Kajiado county government in all the four departments. The study employed stratified random sampling, to categorize the population into strata. To get the number of employees per department, the study used the sample proportionate to population technique. Then, the study used simple random sampling to select the employees. The study used the Yamane (1973) formula to arrive at the sample size of 363 respondents. Data was collected through questionnaires. A pilot study took place at Kajiado County. Questionnaires were administered to the sampled employees at the county. Data was analyzed using SPSS. Findings revealed that budget planning positively and significantly influence financial performance of the county government of Kajiado (β = 0.168, p = 0.000). It was noted that budget coordination positively and significantly influences financial performance of the county government of Kajiado (β = 0.494, p = 0.000). Results indicated that budget evaluation positively and significantly influence financial performance of the county government of Kajiado (β = 0.340, p = 0.000). It was concluded that Kajiado County employs a collaborative approach to budget planning, involving employees and various departments from the outset. Teamwork and consultation among departments in the budgeting process is crucial for ensuring alignment with strategic objectives and promoting ownership and accountability among stakeholders. It is recommended that efforts should be made to ensure that the budget committee is adequately resourced and empowered to fulfill its oversight role effectively. The county government of Kajiado should consider implementing cross-functional budgeting teams comprising representatives from various departments. The county government of Kajiado should implement a comprehensive review process that not only assesses expenditure performance but also evaluates the effect of budget allocations on the county's strategic objectives and service delivery. The study will help Kajiado county government officials understand the impact of budget evaluation and coordination on financial performance, enabling them to enhance budgeting control measures and achieve county goals. The findings will also benefit future researchers and academicians, contributing to the body of knowledge on budgetary control measures.