Inventory Controls And Financial Performance Of Garissa County Government, Kenya

ABSTRACT

Good performance of Kenya’s county government is critical due to the important role that these governments play in the country. In Garissa County, the revenue collected in the year 2014/2015 was Ksh 96 million while the targeted revenue was Ksh 500 million per year and therefore the county fell short of its revenue collection target. In the year 2013/2014 the revenue collected was Ksh 39.5 million while the targeted revenue was Ksh 500 million per year. This therefore has led to the deficit in the county government budget. Inventory department that accounts for the largest portion of its assets has been given the highest priority in this case. However, in spite of these heavy allocations, the revenue collection has never surpassed the target. It is in this spirit of improving and enhancing the performance of the county government that this study was carried out to examine the effect of inventory control and financial performance of Garissa county government, Kenya. The general objective of the study examined inventory controls and financial performance of Garissa county government, Kenya. The specific objectives were to establish the effect of inventory recording on financial performance of Garissa county government, Kenya, to determine the effect of stock audit on financial performance of Garissa county government, Kenya, to evaluate the effect of e - procurement on financial performance of Garissa county government, Kenya and to examine the effect of inventory management training on financial performance of Garissa county government, Kenya. The study adopted a descriptive research design. The target population of the study was all the 250 employees in the Garissa county treasury department. The sample size was 70 employees in the Garissa county treasury department who was selected using stratified random sampling. Primary data was collected through the administration of the questionnaires. After quantitative data is obtained through questionnaires, it was prepared in readiness for analysis by editing, handling blank responses, coding, categorizing and keyed into statistical package for social sciences (SPSS) computer software for analysis. The statistics generated included descriptive and inferential statistics. The study found that inventory recording have a positive and a significant effect on financial sustainability. The study found that stock taking have a positive and a significant effect on financial sustainability. The study found that E-procurement have a positive and a significant effect on financial sustainability. The study found that inventory management traning have a positive and a significant effect on financial sustainability. The study concluded that highly automated counties perform better than a county that still uses manual systems. The study also concluded that highly automated counties perform better than a county that still uses manual systems. The study recommends that there should be transparency in stock audit in the county governments. In addition, all the county government should be automated so as to improve their performance.