FINANCIAL ACCOUNTABILITY PRACTICES AND FINANCIAL SUSTAINABILITY OF DONOR FUNDED PROJECTS IN KIAMBU COUNTY, KENYA
FINANCIAL ACCOUNTABILITY PRACTICES AND FINANCIAL SUSTAINABILITY OF DONOR FUNDED PROJECTS IN KIAMBU COUNTY, KENYA
Janiffer Gathigia Ndibaru - Master of Science in Finance, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Gichana, James Ongwae - Lecturer, Department of Economics, Accounting and Finance, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Since the inception of county governments in early 2018, several functions have been devolved from the national government. The county governments have since then been in charge of billions of Kenya shillings. Since 2018, most of the county governments have reported budget deficits resulting in their inability to sufficiently fund both recurrent and development expenditure within their jurisdictions. Donors come in handy to facilitate projects in the Counties where the County governments do not have the resources to uptake certain projects that touch on development and poverty reduction. The purpose of this study was to assess the relationship between Financial accountability practices and financial sustainability of donor funded projects in Kiambu County, Kenya. The specific objectives of the study were; to examine the influence of Financial monitoring, Financial planning, Financial control and Fund utilization on financial sustainability of donor funded projects in Kiambu County, On the theoretical review, the study was guided by three theories namely; theory of change, complexity theory, theory of financial control and accounting process theory. Descriptive research design was used in the study. The target population included managerial staffs which will be a total of 360 head office heads and sub county heads in the Kiambu. Stratified random sampling was used to arrive at target group while simple random sampling was carried out get the sample size. The sample size was 52.5% of the target population which was 189 respondents. Data was collected using Questionnaires. The results indicated that there independent variables (Financial monitoring, financial planning and financial control) statistically influenced sustainability of donor funded projects in Kiambu County significantly. The study further revealed that fund utilization effect on financial sustainability of donor-funded projects was positive but insignificant. The study recommends that the management and stakeholders of non-profit organizations to ensure that; financial management practice is properly put into practice, proper financial planning is done to relevant stakeholders in time to develop trust among the stakeholders, financial control is practiced so as to ensure that proper financial management is done in the organizations and projects are constantly monitored and risks assessed prior to project implementation.
