Effect Of Financial Management Practices On Performance Of County Governments In Kenya. A Case Of Garissa County Government, Kenya

The running of an organization today has to be by trusted people in the areas where the resources are much involved that is Finance, people and materials. However, this has not been the case since the management of organization has taken another turn to try and introduce the culture of misusing finances and materials. In the recent past, mistrust of people with financial management has been the center stage. There has been rising wave of public management reforms giving rise to concepts of new public management leading to surge of studies about the local/county governments, however very little research has been done over time to explain implication of financial management on County governments’ performance. This study therefore sought to find out the effects of financial management practices on performance of Garissa County government. The objectives of the study were; to find out the effect of budgeting practices on financial performance of Garissa County, to examine the effect of internal control practices on financial performance of Garissa County, to establish the governance practices on financial performance of Garissa County and to determine the effects of public procurement practices on financial performance of Garissa County. This study is guided by the pecking order theory, Just in time Model and the Budgeting Theory. The study employed a descriptive survey research design, the study targets 120 respondents selected from the county as the sample population. Data was collected by the use of structured questionnaires and interview schedules. Secondary data was also obtained from county reports. Both quantitative and qualitative data analysis were used. The researcher used both descriptive and inferential statistics to analyze quantitative data. Budgeting helps the treasury of a county government to prepare, make appropriate decisions, and agree on a county government's purpose and course.