The Joint Effect of Budgeting Practices, Public Participation and Automated Revenue Collection System on Financial Performance of County Governments in Kenya

Abstract

Purpose of the Study: The purpose of this study was to examine the combined effect of budgeting practices, public participation and automated revenue collection systems on the financial performance of county governments in Kenya.

Methodology: The study employed a pragmatic research philosophy and an ex-post facto research design. The target population consistent of 47 county go governments in Kenya. A questionnaire was used to survey the controllers of budget from 45 county governments in Kenya. The research employed both inferential and descriptive statistics, performing both regression and correlation analyses.

Findings: The findings revealed that the joint effect of budget practices, public participation, and automated revenue collection systems on the financial performance of county governments in Kenya was significantly greater than the individual effect of budget practices (R2 = 0.566, F= 37.384, p<0.05), with an R squared greater than that of the relationship between budget practices and financial performance alone (0.437).

Conclusion: Based on these findings, the study concludes that a comprehensive approach incorporating budget practices, public participation, and automated revenue collection can significantly improve the financial performance of county governments.

Recommendations: The study recommended that the adoption of suitable budgeting practices, the encouragement of public participation, and the implementation of automated revenue collection systems in county governments.

Keywords: Budgeting Practices, Public Participation, Automated Revenue Collection System, Financial Performance, County Governments in Kenya