FINANCIAL MANAGEMENT PRACTICES AND PERFORMANCE OF GOVERNMENT PROJECTS IN KITUI COUNTY, KENYA

Jackson Musyoka - School of Business, Kenyatta University, Kenya

Fredrick W. S. Ndede - School of Business, Kenyatta University, Kenya

ABSTRACT

Financial management entails the process of planning, organizing, controlling, and monitoring financial resources to achieve institutional goals and objectives. A descriptive research sought to examine the relationship between financial management practices (financial planning, financial monitoring, financial control, and financial evaluation) and performance of Kitui county government’s projects. The study sampled 67 participants from 207 employees of Kitui county government working under ministry of finance and economic planning. Data was collected using structured questionnaires and analyzed using descriptive and inferential statistics. The findings revealed that there is a insignificant positive correlation between financial planning and government project performance (r =0.129, P=0.340); a significant positive correlation between financial monitoring and project performance (r = 0.367, p=0.005); a positive and significant correlation between financial control and project performance (r =0.533, P=0.000); and a positive and insignificant correlation between financial evaluation and project performance (r =0.245, P=0.063). Therefore, the study concludes that financial planning and financial evaluation positively affects government project performance, but the effects are not significant. The study further concludes that financial monitoring and financial control have a positive and strong effect on the performance of government projects in Kitui County.

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