FACTORS AFFECTING THE IMPLEMENTATION OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM IN THE PUBLIC SECTOR IN KENYA
Osano Nyanchama Anne - Masters in Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Karanja Ngugi (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The purpose of this study was to assess factors affecting implementation of Integrated Financial Management Information System [IFMIS] on performance of Public Sectors in the Republic of Kenya. IFMIS is operational in both the National and County Governments. The System guarantees that each expenditure is not only traceable at the same time delivering optimal Value for Money. The study was be guided by their search questions. Financial Management information Systems are not a new phenomenon. Over the last decade the Government of Kenya has undertaken a number of PFM reforms aimed at enhancing accountability and Transparency. These reforms have targeted the Core PFM Systems of budget formulation and execution, public procurement, revenue collection, internal and external Audit, Payroll and Pensions, Public debt and guarantees, Accounting and Reporting. This calls for sustained implementation of the Government’s reform programs. One of the major reforms embarked on, is the automation of Public Financial Management processes. The introduction of the Integrated Financial Management system, Electronic Funds Transfer, the Pension system and the Public debt management systems among others, have been premised on the realization that ROK can effectively leverage existing and emerging technology to enhance the pace of reforms. These initiatives have drawn support from Development Partners, including the World Bank, that have worked closely with the Kenya Government in implementing the reforms. The broad objective of these reforms is to strengthen PFM systems by enhancing transparency, accountability and responsiveness to public expenditure policy priorities. This Study was be useful to the Government of Kenya aimed at not only enhancing IFMIS but also addressing the challenges that impede the successful implantation of the system. The Data collected was analyzed both quantitatively and qualitatively. The information was integrated and expressed in percentages and frequencies. Tables, graphs and pie charts were used in the presentation of the findings. The study found out that there was a positive and a significant relationship between ICT infrastructure and Implementation. Cost had a positive and a significant relationship with Implementation of IFMIS. Corporate culture positively and significantly influenced Implementation of IFMIS. Capacity building and training had a positive and a significant relationship with Implementation of IFMIS. The study concludes that public sectors staffs can easily extract and present data from IFMIS in ways that facilitated analysis. Information security risks in IFMIS affected specific information that staffs required to carry out their work. IFMIS enabled public sector staffs to trace all stages of transaction processing in the State Department. IFMIS made bank reconciliation automatic thus allowing a closer monitoring of outstanding bill and cash in bank account. The ministry had enough capacity to effectively promote use of IFMIS. The study recommends that public sectors staffs ought to easily extract and present data from IFMIS in ways that facilitate analysis. Information security risks in IFMIS ought to affect specific information that staffs requires to carry out on their work. Public service staffs ought to be comfortable with the introduction of IFMIS. IFMIS ought to upgrade to improve public service performance. IFMIS ought to improve the effectiveness and efficiency of public expenditure programs. Staff training ought to enable the staffs to feel motivated to deliver better on their job. The ministry ought to have enough capacity to effectively promote use of IFMIS.
