




































AMERICAN INTERNATIONAL JOURNAL OF SOCIAL SCIENCE RESEARCH 14(1) (2023), 43-53 

 

43 

 

SOCIAL SCIENCE RESEARCH 

AIJSSR VOL 14 NO 1 (2023) P-ISSN 2576-103X   E-ISSN 2576-1048 
 

Available online at https://www.cribfb.com 
Journal homepage: https://www.cribfb.com/journal/index.php/aijssr 

Published by CRIBFB, USA 

PUBLIC FINANCIAL MANAGEMENT PRACTICES AND 

PERFORMANCE OF SELECTED COUNTY GOVERNMENTS IN 

KENYA                                                                           
 

  Winnie Mong’are (a)1     Gerald Atheru (b)      
 

(a) School of Business, Economics and Tourism, Kenyatta University, Kenya; E-mail: bochaberimongare@gmail.com 
(b) School of Business, Economics and Tourism, Kenyatta University, Kenya; E-mail: atheru.gerald@ku.ac.ke 

 

 
A R T I C L E I N F O 

      
 

Article History: 
 

Received: 29th August  2023 

Revised: 27th October 2023 

Accepted: 8th November 2023 

Published: 25th November 2023 

 
Keywords: 

Financial Management, Public Sector, 
Performance, Revenue Management 

 
      JEL Classification Codes:  

 
      H1, H2, H3, H6, H6 

 

 

 

 

        

 
A B S T R A C T 
 
Although county governments were introduced for devolution, misappropriation and corruption hinder 

this objective. This study aimed to examine how financial management practices affect the performance 

of Central Rift County governments. The research was informed by agency, institutional, and stewardship 

theories. A descriptive research design was used. The target population was employees within Nakuru 
County’s public finance sector. A census of all 80 employees was done, and a Cronbach alpha of 0.7 was 

used to determine the reliability of the research instruments. Secondary data was collected from published 

materials from county and government agencies. Data was analyzed through the statistical package for 

social sciences to provide inferential and descriptive statistics. The study revealed that county 

governments use budget implementation, regular reviews, and monitoring to improve compliance and 

performance. There was a moderate positive and statistically significant correlation between public 

budgeting on the performance of Central Rift County governments (r = 0.443; p < 0.05); an average 

positive and statistically significant correlation between public financial reporting on the performance of 
Central Rift County governments (r = 0.441; p < 0.05); a moderate positive correlation between public 

revenue mobilizations on the performance of Central Rift County governments (r = 0.441; p < 0.05), and 

a moderate positive correlation between public finance procurement on the performance of central rift 

county governments (r = 0.441; p < 0.05). There is a need to realign the budget processing and reporting 

format in conformity with IPSAS reporting standards. 

 
 

© 2023 by the authors. Licensee CRIBFB, USA. This article is an open access article  distributed 

under the terms and conditions of the Creative Commons Attribution (CC BY) license  

(http://creativecommons.org/licenses/by/4.0/).  

 

INTRODUCTION 

The importance of evaluating the performance of county governments has been underscored. Turley, Robbins, and McNena 

(2015) note that assessing local governments' performance helps distinguish well-performing and local county governments 

in dire financial difficulties. This distinction is significant in replicating practices of well-to-do countries in those undergoing 

economic distress. Britain Greasley, John, and Wolman (2011) note that variegated factors economically give some 

countries peculiar advantages. Regardless, county governments employ different strategies to meet this gap. In Indonesia, 

Adler et al. (2012) note that the performance of county governments depends on regulatory requirements such as internal 

controls and budgeting, which enhance the effectiveness of governance. Regionally, countries such as Nigeria, Uganda, 

South Sudan, and South Africa have embraced local governments to improve social delivery. It is the case that local 

governments in Nigeria, as Agba, Akwara, and Idu (2013) note, need to improve service delivery. Despite significant 

financial allocations, Nigerian local governments still need to justify their continued office tenure in aspects related to socio-

economical standards of measurable growth. 

Tumushabe, Muyomba-Tamale, and Mushemeza (2010) note the significance of monitoring and assessing the 

periodic performance of county governments using such means as the balanced scorecard, ensuring the tracking of point 

socio-economic progress. In Tanzania, local governments in the form of municipalities have been created to enhance quality 

service delivery. According to Lerno (2016), county governments in Kenya still need to record better performance regardless 

of robust public financial management practices. Considering Kibunja (2017), citizens hold Kenyan county governments 

accountable for allocating, using, and custody of resources. 

                                                      
1Corresponding author: ORCID ID: 0000-0001-8778-8950 
© 2023 by the authors. Hosting by CRIBFB. Peer review under responsibility of CRIBFB, USA.  

https://doi.org/10.46281/aijssr.v14i1.2128 

 
To cite this article: Mong’are, W., & Atheru, G. (2023). PUBLIC FINANCIAL MANAGEMENT PRACTICES AND PERFORMANCE OF SELECTED 

COUNTY GOVERNMENTS IN KENYA. American International Journal of Social Science Research, 14(1), 43-53. 

https://doi.org/10.46281/aijssr.v14i1.2128 

http://creativecommons.org/licenses/by/4.0/)
https://doi.org/10.46281/aijssr.v14i1.2128
https://orcid.org/0000-0001-8778-8950
https://orcid.org/0009-0006-4292-1029


Mong’are & Atheru, American International Journal of Social Science Research 14(1) (2023), 43-53

  

44 
 

Many countries have adopted a unifying form of PFM. The unification covers major policy questions such as the 

fiscal position of the government, operational issues, and the provision of specific services (Cangiano et al., 2013). 

According to Mathenge and Muturi (2017), public financial management is concerned with ensuring the availability of 

funds effectively and efficiently to benefit citizens. The PFA requires every county to outline a development plan that 

reflects its priorities. The method includes strategic priorities and programs the county wants to implement, details of how 

the program will contribute to the development of the county, measurable indicators, and budget allocated (Cheruiyot, 2018). 

Lastly, the performance of county governments in Kenya can be measured through the effective and efficient use of county 

resources to implement infrastructure and improve health, education, and trade (Lerno, 2016). The county executive for 

finance is responsible for managing funds allocated and collected by the county. The CoK 2010 also established different 

public finance management institutions such as the Commission for Revenue Allocation (2018), the Office of the Controller 

of Budget (COB), and the Salaries and Remuneration Report. The mandate of the Auditor General was also expanded under 

the new constitution to cover auditing of counties. 

According to the Commission of Revenue Allocation (2018), county governments receive a share of revenue based 

on population, poverty, land area, fiscal effort, and development factors. Each factor determines the amount of funds each 

county receives from the national government. Counties are expected to provide the auditor general with financial 

statements, which are audited and published. Notably, these published reports provide a basis for future revenue allocations.  

According to Njahi (2017), financial management remains the lifeblood of organizations. Despite guidance provided in the 

PFM Act of 2012, county governments will need help in financial management. For example, some county assemblies 

maintain manual ledgers despite the PFM Act of 2012 requirement that all financial transactions be processed electronically 

through IFMIS (Office of Auditor General, 2018). 

In Nakuru County, the Auditor General provided a qualified audit opinion based on over Kshs 30 million variances 

between IFMIS and financial statements and non-disclosure of legal costs. Nakuru needs to be more utilized over Kshs 200 

million in its budget for 2018/2019 (Office of the Auditor General, 2018). Laikipia exhibits variances in financial statements, 

IFMIS, and unrecorded revenues. Similarly, Baringo County received an adverse opinion due to aspects such as inaccurate 

statements of cashflows and understatement of assets. In Nyandarua County, the pending bills have significantly increased 

from 380 million in 2016/2017 to 740 million in 2017/2018, partly due to unconfirmed pending bills (Office of the Auditor 

General, 2018). The current study seeks to examine the effect of financial management practices on the performance of 

counties in Kenya. 

This study will answer the research question: how do public financial management practices affect the performance 

of counties in Kenya? The following are the objectives of the study:  

 To determine the effect of public budgeting on the performance of CRCGs. 

 To establish the effect of public financial reporting on the performance of CRCGs.  

 To find out the effect of public revenue mobilization on the performance of CRCGs. 

 To establish the effect of public finance procurement on the performance of central rift county governments. 

 

LITERATURE REVIEW 

Theoretical Review 

The three theories that inform the current study are the agency, stewardship, and institutional theories. 

 

Agency Theory  

The agency theory remains one of the foremost financial theories explaining the relationship between different 

organizational stakeholders. According to Wolk, Dodd, and Rozycki (2008), the agency theory predicts and expounds the 

behavior of groups involved with an organization. One of the major agency relationships is between the managers' faction 

and the stockholder of an enterprise. Managers are appointed by the owners of a firm to govern the firm’s interests, thus 

setting up an agency relationship. Owners are interested in maximizing return on investment. In contrast, managers have a 

wider range of economic interests, such as compensation. Due to the potential conflict, owners are forced to contract the 

managers in such a way that reduces such disputes (Wolk et al., 2008). Costs are met in monitoring agency contracts with 

the management and auditing fees. Additionally, the agency highlights that a conflict between owners and managers can be 

mitigated through financial reporting. Regular financial reporting is one approach titleholders can use to supervise 

employment agreements with managers. Auditors then independently verify the reports (John et al., 2014). Overall, this 

theory applies to the current research in several ways.  

In Kenya, the county government receives annual budgetary allocations from the national government. Moreover, 

the county governments also generated revenues to meet development and recurrent expenditures. Therefore, county 

government officials ensure that funds are used prudently to meet development aims. The national audit office also regularly 

audits the financial reports to find that the county government uses funds effectively (Njahi, 2017). Therefore, the principals 

in this case are taxpayers in each county government. At the same time, the officials are the agents who are expected to use 

revenues effectively to meet each county's social and development goals. 

 

Institutional Theory  

The institutional theory emphasizes that organizational environments are vital in shaping the structure and actions. 

According to Scott (2005), managerial decisions are driven by goals for efficiency and cultural and social factors. The theory 

focuses on the deeper and more resilient determinants of the economic behavior of institutions. One of the areas in which 

institutional theory has been applied is the budgeting process. Researchers have focused on how public organizations balance 

societal visions and political projects. According to Covaleski et al. (2003), the theory applies the budgeting process in 



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45 
 

resource negotiating and mobilizing to conduct goals. The pillars of institutions advanced by this theory include regulatory, 

normative, and cultural cognitive. The balance between these pillars ensures an organization realizes its service delivery 

goals.  

The theory is relevant to this study in aspects such as the implementation of procurement law as well as budgeting. 

According to Cheruiyot (2018), the county government in Kenya has received over Ksh.1 trillion from the national 

government to ease the achievement of goals. Therefore, deciding the practices the county government uses to ensure proper 

use of the funds to realize service delivery and development goals is necessary. 

 

Empirical Review  

Budgeting  

Kathungu (2016) examined the impact of budgeting use on the financial performance of county government. Specifically, 

the author focused on budgeting and revenue collection of the county governments. Kathungu (2016) argues that budgets 

provide county governments with a platform for reporting outcomes at the end of the budget year. Regarding research 

design, the author used a descriptive approach to set up the connection between variables. Additionally, primary data for 

the study was amassed through defined questionnaires distributed among the 70 respondents. Secondary data was sourced 

from the Auditor General’s 2013, 2014, and 2015 reports. The finding of this study shows that budgeting aspects such as 

county revenues, county expenditures, and resources positively affected financial performance. However, the analysis 

assumes that budgeting is the only factor influencing the performance of Kenya's county governments. 

Kibunja (2017) looks at the impact of the budgetary procedure on the financial performance of Muranga County. 

The author specifically focused on planning, implementation, monitoring, and assessment. The inquiry used a non-

experimental descriptive research approach to gather data from 83 participants. Moreover, the respondents supplied primary 

data through self-administered questionnaires, while audited financial statements provided secondary data. The results from 

the study show that budgeting affects the financial performance of county governments. Additionally, the author concludes 

that counties must increase public participation in budgeting to enhance financial performance (Kibunja, 2017). 

Nevertheless, the study does not examine other public fiscal management approaches that affect performance. At the same 

time, Mutungi (2017) examines the effects of budgeting and budgetary controls on the financial performance of devolved 

systems of governments in Kenya. The study employed a descriptive research approach to decide the variables' relationships. 

The results of this study implied that counties without proper budgetary processes face challenges in financial performance. 

One of the strengths of this study is that it examines the performance of all county governments in Kenya. However, the 

analysis must account for other fiscal management approaches affecting performance. 

 

Internal Controls  

Onyango (2014) conducted a study to determine the effect of internal controls on the performance of developed governments 

in Kenya. This study's findings show that most county governments must implement modern internal control systems to 

enhance financial performance. At the same time, Lerno (2016) tries to set up the relationship between internal controls and 

the implementation of county governments. The research findings show that most respondents needed help understanding 

the relationship between internal controls and performance. The author concluded that although county governments had 

implemented internal control systems, more was needed to improve performance. Cheruiyot, Namusonge, and Sakwa (2018) 

examine how internal control practices influence the performance of county governments in Kenya. The study sampled the 

version of ten county governments and employed primary and secondary data. The study revealed that those with strong 

internal controls proved improved financial performance among the county governments sampled. 

Ahmed and Ngang’a (2019) examined the subject from the perspective of county government in the coastal region. 

A descriptive research design was applied to the research. Additionally, the author collected primary data from 40 

respondents in Mombasa, Kilifi, Kwale, and Taita Taveta. The study confirmed that only risk management played a vital 

role in the performance of county governments. 

 

 Revenue Mobilization  
Development Initiatives (2018) states that a sound revenue system for county governments is a prerequisite for success in 

Kenya's fiscal decentralization goal. Biwott (2017) examines how revenue mobilization can influence the socio-economic 

development of county governments in Kenya. The study focuses on revenue mobilization practices such as county 

collections, revenue infrastructure, and training and how they affect the outcome of counties in the north rift region. 

Cheruiyot (2018) focused on the effect of public fiscal management practices on the performance of county governments. 

The study examined how financial planning and budgeting, internal control, public financial procurement, revenue 

mobilization, and general economic governance practices influence the performance of county governments in Kenya. The 

study showed that internal controls influenced financial performance significantly compared to other factors. 

In another study, Madegwa, Makokha, and Namusonge (2018) focus on how revenue collection affects the 

performance of the county government of Trans Nzoia. A descriptive research design was employed to set up the connection 

between the variables in the study. Primary as well as secondary data was used. The study shows that revenue collection 

automation can enhance county governments' performance. 

 

Public Finance  

In one study, Mbae (2014) examines how public procurement law affects the performance of the Machakos County 

government. A descriptive research design was used by the author in this study. Moreover, structured questionnaires were 

used to collect data from the respondents in this study. The results show that although procurement processes and laws have 



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46 
 

increased transparency, they have also reduced the speed of goods acquisition by counties. He concludes that county 

governments should continue to embrace procurement practices to improve performance. In another study, Ndiiri (2016) 

examined the effect of e-procurement on the performance of devolved governments in Kenya. A descriptive research design 

was adopted by the author in this study. Primary data for this study was sourced through semi-structured questionnaires, 

while secondary data was sourced from the procurement portals. The results show that e-procurement has enhanced the 

performance of county governments due to increased transparency. 

Additionally, Cherotich (2018) examines how effective procurement practices can enhance the performance of the 

Kericho County government. The study focused on procurement planning, fiscal management, and professionalism. A 

closed-ended questionnaire was used to collect information from the respondents. The results showed statistical significance 

between procurement practices and the performance of the Kericho County government. 

 

MATERIALS AND METHODS 
The research employed a descriptive research design. This research design is usually structured and specifically designed 

to measure the characteristics described in the research questions. Data collection in this design involved a structured process 

whereby the researcher can use questionnaires to ask the participants questions on items related to the research questions 

(Hair Jr, 2015). The target population for this study was employees working in the treasury section of the central Rift county 

governments. The study conducted a census of all the respondents in the target population. The census approach was ideal 

for this study as the number of respondents was less than 100. Moreover, the census approach ensured that the researcher 

obtained views from different departments involved in diverse public finance management practices in the counties. 

The study collected primary data based on the research questions. The researcher collected preliminary data through 

self-administered questionnaires. According to Kothari (2009), questionnaires were sent to the respondents, who were 

expected to read and understand and then supply answers. The reliability of the questionnaire was decided through a pilot 

study. According to Bryman and Bell (2015), a pilot study consisted of ten percent of members of the study population. The 

data from the pilot study was statistically analyzed to obtain the Cronbach alpha coefficient. A Cronbach reliability 

coefficient of 0.7 was the yardstick for deciding the instrument's reliability. The researcher determined the validity of the 

instrument in two ways. Firstly, the researcher sought the supervisor's opinion on the terminologies employed in the 

questionnaire. Additionally, the researcher sought industry experts' opinions to decide if proper language was used based 

on the research questions. 

The study used descriptive and inferential statistics to analyze data. Specifically, the researcher used the Statistical 

Package for Social Sciences (SPSS) as the primary data analysis tool. A multiple regression equation proved below 

determined the relationship between the independent and dependent variables. 

 

Y = β0 + β1X1+ β2X2+ β3X3+ β4X4+ ε 

 

Where:  

 

Y= Performance of county governments 

β0 -Constant 

X1-Public Budgeting  

X2- Public financial reporting 

X3-Public Revenue mobilization  

X4-Public finance procurement 

Β1, β2, β3, and β4- parameters to be estimated  

Once data analysis was done, data was presented through tables and charts to underline the connection between the 

independent and dependent variables of the study.  

 

RESULTS 

Public Budgeting on Performance of CRCGs  
The respondents were asked to rate how much they agreed that public budgeting affected how well the CRCGs performed. 

The results are shown in Table 1. 

 

Table 1. Public Budgeting on Performance of CRCGs 
 

Items SA  A U D SD Mean Std 

% % % % %   

Your county uses budget estimates to enhance financial management and 

performance. 

  26 47 17  10  0 3.887 0.907 

The County government utilizes budget planning to improve financial 

performance. 

  37  45 13 5 0 4.113 0.870 

Our government uses budget controls to enhance financial performance.    55 42 3 0 0 4.516 0.565 

We often use budget implementation and monitoring to enhance performance.  57  37 6 0 0 4.500 0.621 

Our government does regular budget reviews to improve compliance and 

overall performance. 

39 44 11 6 0 4.145 0.866 

 

 



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With a mean of 3.887, most respondents (73%) agreed that the county uses budget forecasts to improve fiscal 

management and performance. The results also showed that most respondents (82%) agreed, with a mean of 4.113, that the 

County government uses budget planning to enhance financial performance. Additionally, most respondents (97%) agreed, 

with a mean of 4.516, that the government employs budget constraints to improve financial performance. The results also 

showed that most respondents (94%) agreed that the county government often uses budget implementation and checking to 

improve performance, with a mean score of 4.500. With a mean of 4.145, most respondents (83%) also agreed that the 

government conducts frequent budget reviews to boost compliance and overall performance. The standard deviation varied 

from 0.565 to 0.907, showing insignificant variation among the responses concerning the mean. 

 

Public Financial Reporting on the Performance of CRCGs  

The respondents were asked to rate how much they agreed that public financial reporting affected how well central rural 

county governments performed. The results are shown in Table 2. 
 

Table 2. Public Financial Reporting on Performance  
 

Items S A  A U D SD Mean Std 

% % % % %   

Our county provides regular financial reports to enhance performance and 

compliance. 

 52 39 9  0 0 4.419 0.667 

Our county government published service and operational reports to 

improve performance 

 37 31 19 13 0 3.887 1.073 

We often conduct regular risk assessments to improve performance.   44 40 6 10 0 4.177 0.932 

Our county government uses financial systems and standardized financial 

documentation to improve performance. 

 37 39 10 14 0 3.984 1.032 

The county government presents annual financial statements for auditing 

and reporting 

 42 39 11 8 0 4.145 0.921 

 

Most respondents (91%) agreed that the county produces frequent financial reports to improve performance and 

compliance, with a mean score of 4.419. With a mean of 3.887, most respondents (68%) agreed that the county government 

issued service and operational reports to enhance performance. With a mean of 4.177, most respondents (84%) agreed that 

the county government often conducts routine risk assessments to improve performance.  

With a mean of 3.984, respondents (76%) agreed that the county government employs financial systems and 

standardized financial paperwork to enhance performance. Most respondents agreed with the issues, as shown by the 

standard deviation, which varied from 0.667 to 1.073. The research supports Hou & Gopala's (2015) claim that financial 

reporting might affect crucial choices like grant applications. 

 

Public Revenue Mobilization on Performance of CRCGs  

The respondents were asked to rate how much they agreed that public revenue mobilization affected how well the CRCGs 

performed. The results are shown in Table 3. 
 

Table 3. Public Revenue Mobilization on the Performance 
 

Items S A  A U D SD Mean Std 

% % % % %   

We collect county revenue through fees and fines to improve service 

delivery. 

47 34 13 6 0  4.210 0.908 

We utilize revenue administration and automation measures to enhance 

the overall performance of our county government 

50 31 15 5 0 4.258 0.886 

We have revenue enforcement staff to improve collection and 

administration measures.  

44 53 3 0 0 4.403 0.557 

We have foreign partners who provide grants for different projects in our 

county.  

37 44 16 3 0 4.145 0.807 

We often introduce new revenue measures through taxation and fines in 

our county. 

44 50 6 0 0 4.371 0.607 

 

Most respondents (81%) agreed, with a mean score of 4.210, that the county government should raise money via 

taxes and penalties to enhance service delivery. With a mean of 4.258, most respondents (81%) also said that the county 

should use automation and revenue administration strategies to improve the overall performance of our county government. 

With a mean of 4.403, most respondents (97%) also agreed that their revenue enforcement team is improving their collection 

and administration procedures.  

A large majority of respondents (81%) agreed, with a mean of 4.145, that the county administration had 

international partners that contribute money for various initiatives in our county. With a mean of 4.371, the majority (94%) 

agreed that the county administration often implements new revenue methods via taxes and penalties. 

 

Public Finance Procurement on the performance of CRCGs 

The respondents were asked to rate how much they agreed that public finance procurement affected how well the CRCGs 

performed. The results are shown in Table 4. 

 

 



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Table 4. Public Finance Procurement on the Performance 

 
Items S A  A U D SD Mean Std 

% % % % %   

We have automated tender application procedures in the 

county.  

37 34 10 16 3 3.855 1.185 

We often use procurement planning in our county to enhance 

performance.  

55 34 8 3 0 4.403 0.778 

We follow all procurement processes and laws provided in the 

Public Procurement Act.  

44 46 7 3 0 4.307 0.738 

We ensure compliance with all our public finance procurement 

activities.   

37 44 16 3 0 4.145 0.807 

We publish all public finance procurement information on our 

website to improve performance.  

55 33 7 5 0 4.387 0.869 

 

Most respondents (71%) agreed, with a mean score of 3.855, that the county administration had automated tender 

application processes. With a mean of 4.403, most respondents (89%) also agreed that the county government often uses 

procurement planning to improve performance. With a mean of 4.307, they also agreed (90%) that the county government 

adheres to all regulations and procedures outlined in the Public Procurement Act.  

Additionally, most respondents (81%) agreed, with a mean of 4.145, that the county government assures 

compliance with all public financial procurement operations. With a mean score of 4.387, most respondents (88%) also 

agreed that the county government should show all information on general financial procurement on its website to enhance 

performance. Most respondents, as offered by the standard deviation range of 0.738 to 1.185, agreed with the problems.  

 

Inferential Statistics  

Public Budgeting on Performance of CRCGs 

The study looked to decide the relationship between public budgeting and the performance of CRCGs. The findings of the 

study are shown in Table 5. 
 

Table 5. Public Budgeting on Performance of CRCGs 
 

  Performance of CRCGs 

Public Budgeting Pearson Correlation .443** 

 Sig. (2-tailed) .000 

N 62 

**. Correlation is significant at the 0.05 level (2-tailed). 
 

According to the findings, the research found a statistically significant moderately favorable link between public 

budgeting and the performance of central rift county administrations (r = 0.443; p 0.05). This suggests that public budgeting 

helps the CRCGs operate better. 

 

Public Financial Reporting on the Performance  

In addition, the research intended to decide if public financial reporting and the performance of CRCGs were related. 

Table 6 displays the study's conclusions. 

 

Table 6.  Public Financial Reporting on the Performance 

 
  Performance of CRCGs 

Public Financial Reporting Pearson Correlation .441** 

 Sig. (2-tailed) .006 

N 62 

    **. Correlation is significant at the 0.05 level (2-tailed). 
 

According to the research findings, there was a statistically significant relationship between the performance of 

the CRCGs and public financial reporting (r = 0.441; p 0.05). This suggests that improved public financial reporting will 

help the CRCGs function better. 
 

Public Revenue Mobilization on the Performance  

The research also looked at the relationship between the performance of CRCGs and the mobilization of public resources. 

Table 7 supplies a summary of the correlation analyses' findings. 

 

Table 7.  Public Revenue Mobilization on the Performance 
 

   Performance of CRCGs 

Public Revenue Mobilization Pearson Correlation .441** 

 Sig. (2-tailed) .000 

N  62 

**. Correlation is significant at the 0.05 level (2-tailed). 

 

 



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In Table 7, there is a moderate relationship between public income mobilizations and the effectiveness of CRCGs. 

(r = 0.441; p < 0.05). The correlation analysis showed that improved public income mobilization enhances CRCGs' 

performance.  

 

Public Finance Procurement on the Performance  
The research also looked at the relationship between public finance procurement and the performance of CRCGs. The results 

of the correlation analysis are outlined in Table 8. 
 

Table 8. Public Finance Procurement on the Performance 
 

   Performance of CRCGs 

Public Finance Procurement Pearson Correlation .441** 

 Sig. (2-tailed) .000 

N  62 

**. Correlation is significant at the 0.05 level (2-tailed). 

 

According to the research, Table 8 (r = 0.441; p 0.05) found a favorable link between public finance procurement 

and the effectiveness of CRCGs. The correlation analysis showed that greater public finance procurement enhances CRCGs' 

operational efficiency. 
 

Regression Analysis 

The performance of the CRCGs was assessed using a regression analysis of the combined effects of public budgeting, public 

financial reporting, general income mobilization, and public finance procurement. 

 

Table 9.  Model Summary 
 

 

Model R R Square Adjusted R 

Square 

Std. Error of the Estimate 

  Sig. F Change 

1 .878a .770 .749 .3873      .000 

 

The study's R-squared value was 0.770, showing that the four independent variables—public budgeting, public 

financial reporting, general revenue mobilization, and public finance procurement—can explain 77.0% of these four 

variables. At the same time, other factors can account for the remaining 23.0%. 
 

ANOVAa 

Model Sum of Squares df Mean Square F Sig. 

1 Regression 28.563 4 7.141 47.607 .000b 

Residual 8.532 57 .150   

Total 37.095 61    

a. Dependent Variable: Performance of CRCGs. 

b. Predictors: (Constant), public budgeting, public financial reporting, general revenue mobilization, and public finance 

procurement.   

 

The variance model effectively predicts how the four independent variables—public budgeting, public financial 

reporting, general revenue mobilization, and public finance procurement—influence the performance of CRCGs because 

the results showed that the p-value was 0.000, which is less than 0.05. Additionally, the F-value of (47.607) shows that the 

model successfully predicted how the independent factors affect the dependent variable. 
 

Table 10. Regression Coefficients 
 

Model Unstandardized Coefficients Standardized 

Coefficients 

   t Sig. 

B Std. Error Beta 

1 (Constant) .038 .145  .260 .796 

Public Budgeting .596 .107 .548 5.578 .013 

Public Financial Reporting .233 .081 .245 2.877 .006 

Public Revenue Mobilization .245 .104 .179 2.356 .022 

Public Finance Procurement .323 .106 .360 3.052 .003 

 

The overall significant test findings for the proposed research model are shown in Table 10. The results' 

interpretations are based on the regression model listed below. 

 

Y= β0 + β1X1+ β2X2+ β3X3 + β4X4 

 

Therefore,  

 

Y= 0.038+ 0.596X1 + 0.233 X2 +0.245X3 + 0.323 X4 

 



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The value of the performance of the CRCGs will be 0.038 when the independent variables are kept constant, 

according to the intercept (0). Additionally, a unit increase in public budgeting would result in a 0.596 gain in the 

performance of CRCGs, all other independent variables being held constant. Keeping all other independent variables equal, 

an increase in public financial reporting would increase CRCGs' performance by 0.233 units. 

Additionally, a unit increase in public revenue mobilization would result in a 0.245 improvement in the 

performance of CRCGs, all other factors being held constant. A unit increase in public finance procurement would, in the 

end, result in a 0.323 improvement in the performance of CRCGs, all other factors being held constant. Public budgeting, 

followed by public finance procurement, general revenue mobilization, and general revenue mobilization, are the factors 

that have the most impact on the performance of CRCGs. 
 

DISCUSSIONS 

According to the investigation, the county utilizes budget projections to improve financial management and performance. 

The research also showed that the county administration uses budget planning to enhance financial performance. The study 

also showed that the county government uses budget constraints to improve financial performance. The findings on the 

impact of budgeting are supported in other studies. For example, Musiega et al. (2023) found that budget credibility enhances 

the efficiency of public sector organizations. These findings are supported by Mauro et al. (2020) who also underline the 

importance of budgeting on public sector organizations’ performance. Moreover, the research also demonstrated that the 

county administration often monitors and implements budgets to improve performance. The study also showed that the 

county government conducts regular budget reviews to boost performance and compliance. 
The study's conclusions showed that the county government produces frequent financial reports to improve 

compliance and performance. The research also showed that the county administration released operational and service 

reports to boost efficiency. The research supports Garcia-Lacalle and Torress (2021) claim that financial reporting might 

affect crucial choices like grant applications. 

The survey also showed that the county regularly assesses risks to boost performance. The research also showed 

that the county government employs standardized financial paperwork and financial systems to enhance the performance of 

county governments. Annual financial accounts for the county government are presented for review and reporting. These 

findings align with other studies such as Kong et al. (2018) and Cedergren et al. (2022), who underline the importance of 

risk management in the performance of public sector organizations.  

According to the study's results, the county government raises money via fines and fees to provide better services. 

The research also showed that the county uses automation and revenue administration strategies to improve the performance 

of county governments. Additionally, the research found that county governments employ revenue enforcement personnel 

to enhance procedures for collection and administration. The investigation also showed that the county governments have 

international partners that provide money to various county programs. The research also showed that the county often 

implements new revenue-generating techniques in our county via taxing and penalties. 

The results also indicate that that the county government has automated tender application processes. The research 

also showed that the county government often uses procurement planning to improve performance. Indeed, Muthee and 

Mang’ana (2021) and Asatiani (2022) found that automation improves the performance of public sector organizations. The 

survey also showed that the county government usually complies with all regulations and procedures outlined in the Public 

Procurement Act regarding procurement. The report also showed that the county governments ensure all our public finance 

procurement operations comply. The survey also found that the county governments post all information on public finance 

procurement on their websites to increase efficiency. 
 

CONCLUSIONS 

According to the research, county governments often use budget implementation and checking to improve performance. 

The research also concluded that the county governments conduct regular budget reviews to boost performance and 

compliance. The study also found a statistically significant moderately favorable association between public budgeting and 

implementing central rift county governments. 

The research found that county governments regularly assess risks to boost performance. The research also 

concluded that the county government employs standardized financial documentation and financial systems to enhance 

performance. According to the findings, the study concluded that the county administration gives yearly financial accounts 

for reporting and auditing. Additionally, the research found a somewhat favorable and statistically significant association 

between the performance of central rift county governments and public financial reporting. 

According to the study's findings, the county government has revenue enforcement personnel to enhance 

procedures for collection and administration. Furthermore, the investigation concluded that the county governments have 

international partners supplying money to various initiatives. The research also concluded that the county governments often 

implement new revenue strategies via taxing and penalties. Additionally, the research found a favorable association between 

the performance of central rift county administrations and public revenue mobilizations.  

According to the study's findings on the impact of public finance procurement on the performance of county 

government, the study concluded that county governments often follow all rules and procedures outlined in the Public 

Procurement Act. The study concluded that the county government must follow all public financing procurement activities. 

To increase performance, the study also concluded that the county government supplies all information on general financial 

procurement on its website. In the end, the analysis found a moderately favourable association between public finance 

procurement and the performance of central rift county governments. 

 



Mong’are & Atheru, American International Journal of Social Science Research 14(1) (2023), 43-53

  

51 
 

Regarding public budgeting, the research recommended that the government should pinpoint its weak points. 

Regarding budgeting, identifying its weak points enables the administration to distribute resources in a beneficial and long-

lasting way. One of the main goals of creating a government budget is to achieve this. The government must ensure that 

money gets to where it is most needed. As a result, the government may demonstrate effective governance and achieve 

economic stability by analyzing historical data to identify portions of society that require economic welfare programs and 

then executing such policies.  

The study's conclusion on financial reporting was that performance data for government ministries and counties 

must be improved. Promoting accountability among the counties and government agencies is necessary. The requirement 

to inform individuals how government ministries and counties use resources must be met. Improvements in record keeping 

are required, including an audit that enables the requirement that all accounts be traced to their source documents and a 

clearer legal foundation for budgets that adhere to the IPSAS reporting structure. Meetings to plan for budgets and to 

encourage information accountability for voters and the broader public need to be improved. The budget processing and 

reporting format must be updated to comply with IPSAS reporting requirements. 

The study's recommendation for revenue mobilization was that the county government take steps to produce an 

annual surplus of revenues over expenses. In this instance, the excess might be utilized to compensate investors who give 

the counties fresh long-term finance. Additionally, county governments must ensure that all operating enterprises are 

properly licensed and recorded in the county revenue databases. The county governments should provide enough parking 

spaces and organize them appropriately before raising parking levies. 

To successfully contribute to local growth, county governments must reform and strengthen their current methods 

for raising money. The county governments should also search for creative approaches to raise money. For this to be 

effective, the revenue mobilization strategy must be modified to combat dishonesty in revenue mobilization and other 

revenue leakages at all stages of revenue collection. 

Taxes and fees are used to fund county governments. Innovative methods of revenue collecting may be used to 

improve county structures, workforce planning, training, new management compensation methods, overall quality 

management, and collaboration among management and employees. 

Since the study focused on the public financial management practices and performance of selected county 

governments, there is a need to conduct a similar study on the Public financial management practices and socio-economic 

development. 

 

 
Author Contributions: Conceptualization, W.M.; Methodology, W.M.; Software, W.M.; Validation, W.M.; Formal Analysis, W.M.; Investigation, W.M.; 

Resources, W.M.; Data Curation, W.M.; Writing – Original Draft Preparation, W.M.; Writing – Review & Editing, W.M. and G.A.; Visualization, W.M.; 

Supervision, W.M.; Project Administration, W.M.; Funding Acquisition, W.M. and G.A. Authors have read and agreed to the published version of the 
manuscript. 

Institutional Review Board Statement: Ethical review and approval were waived for this study, due to that the research does not deal with vulnerable 
groups or sensitive issues. 

Funding: The authors received no direct funding for this research. 

Acknowledgement: Not applicable.  

Informed Consent Statement: Informed consent was obtained from all subjects involved in the study. 

Data Availability Statement: The data presented in this study are available on request from the corresponding author. The data are not publicly available 

due to restrictions. 

Conflicts of Interest: The authors declare no conflict of interest.    

                                                                                                                                                                                                                                 

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