ABSTRACT
Theimportance of fmancial stability in enabling an organization to function efficiently and
maximizethe potential for service delivery cannot be underestimated. The quest for better
servicedelivery under new public management in public organizations in Kenya necessitates
theneed for public organizations to have proper financial standing in order to run operations
andmotivate workers through better remuneration as well as improved working conditions.
It is however disheartening that despite many measures undertaken to examine financial
performanceissues in public organizations, problems related to financial performance such as
workersstrikes due to unmet salary demands as well as poor working conditions continues to
bewitnessed.A scan through literature on factors affecting financial performance reveal that
gaps remain on the influence of budgetary control on financial performance of public
institutions.This study therefore sought to investigate the relationship between budgetary
controlsand financial performance of state corporations in Kenya. The study sought to
accomplishthe following objectives; determine the salient features of budgetary controls in
state corporations, establish the human factors within budgetary controls, establish the
processof budgetary control in public organizations, and determine the challenges affecting
budgetarycontrol. A descriptive survey design was used to gather data from the state
corporation'smanagers and officers of the sampled state corporations. Stratified random and
systematicsampling was used to select 14 corporations out of 138 to participate in the study.
Purposivesampling was used to select 42; corporate services manager, finance manager and
budgetofficer from each corporation to participate in the study. A questionnaire, whose
contentvalidity was checked through an expertise opinion and reliability through test pre-test
methods, was used to gather information. Data analysis was done qualitatively and
quantitatively to generate statistical" parameters such as mean, standard deviation. The
relationshipbetween budgetary control and financial performance was undertaken through
carryingout a correlation analysis of the dependent and independent variables. This was done
withhelp of Statistical package for Social Sciences (SPSS). Discussions of the results were
madebased on the research objectives, then conclusions and recommendations drawn.
Findings indicated that a positive relationship existed between budgetary control and
financialperformance of state corporations. Budgetary features reflect ability to predict
financialmilestones of organizations. Human factors within budgetary controls has to do with
managerialcommitment, employees motivation, employee training and competence as well
asthe attitude between managers and other employees towards the budget process Budgetary
control process as positive influence on financial performance of state corporations. It
influencesthe financial objectives, the allocation of funds as well as investment ventures that
organizationundertakes. It is a process prone to political influence whose implications can
spiralto financial performance. Budgetary controls are prone to challenges with may marred
effectiveachievement of budgetary objectives. The study recommended sensitization among
management and employees of state parastatal on the importance of budgetary controls in
enhancingfinancial performance, avoidance of political interference in the budgetary process
anduse of budgets not only be used as tools for management and indicators of management,
they should also be viewed as practical tools within which organizations should used to
enhance their fmancial goals. Further study should be undertaken on factors affecting
employeesand management commitment to organizational budgets.
ADONGO, K (2021). The Relationship Between Budgetary Control And Financial Performance Of State Corporations In Kenya. Afribary. Retrieved from https://afribary.com/works/the-relationship-between-budgetary-control-and-financial-performance-of-state-corporations-in-kenya
ADONGO, KENNETH "The Relationship Between Budgetary Control And Financial Performance Of State Corporations In Kenya" Afribary. Afribary, 02 Jun. 2021, https://afribary.com/works/the-relationship-between-budgetary-control-and-financial-performance-of-state-corporations-in-kenya. Accessed 08 Sep. 2024.
ADONGO, KENNETH . "The Relationship Between Budgetary Control And Financial Performance Of State Corporations In Kenya". Afribary, Afribary, 02 Jun. 2021. Web. 08 Sep. 2024. < https://afribary.com/works/the-relationship-between-budgetary-control-and-financial-performance-of-state-corporations-in-kenya >.
ADONGO, KENNETH . "The Relationship Between Budgetary Control And Financial Performance Of State Corporations In Kenya" Afribary (2021). Accessed September 08, 2024. https://afribary.com/works/the-relationship-between-budgetary-control-and-financial-performance-of-state-corporations-in-kenya