FACTORS AFFECTING BUDGETARY ALLOCATION IN THE COUNTY GOVERNMENTS IN KENYA
Abstract
The general objective of the study was to determine factors affecting budgetary allocation in the county governments in Kenya. The study derived the following conclusions: Cash flows were important to budgetary allocation in counties; the county governments had reports of actual monthly cash flows, as a means of identifying patterns for monitoring cash flows. County governments departments actual cash flows were closely tracked against departments’ budget allocation and major divergences investigated. Budgetary controls were important in budgetary allocation in counties; budgetary allocations were done taking into account the forecasted revenue and expenditure projections; Counties budgets contained narrative information. Human capital enhanced budgetary allocation in counties; the county governments had a budget office that coordinated and communicated information; and that the county governments had put in place a policy that all budget making staff should be trained to enhance their budget making skills. Based on the results of the study on the factors affecting budgetary allocation in counties in Kenya, the study made the following recommendations; The county governors should work closely with the national government to develop mechanisms that ensure the exchequer allocations from the national government are released on time. County governments should further develop and enhance actual monthly cash flows reporting and tracking processes. Budgetary allocations should be done based on annual development plans and that the county overall budget and budgets for county departments and agencies in the budget estimates should match the ceilings set in the budget policy statement (BPS). County governments should continue enhancing the capacities of their budget offices. County governments should put in place a policy that all budget making staff should be trained to enhance their budget making skills and ensure that this is fully implemented. In addition counties should ensure participation of county staff and other stakeholders in the budget preparation since this ensures full cooperation and commitment for making budgets successful.
Key words: cash flows, budgetary controls, human capital, budgetary allocation
CITATION: Orina, S. M., Obwogi, J., & Nasieku, T. M. (2019). Factors affecting budgetary allocation in the county governments in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1652 –1668.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1211
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