Effect of Integrated Financial Management Information Revenue Systems on Financial Management in County Governments, Kenya

Résumé

There have been significant improvements in Kenya's legal and institutional frameworks for public finance management (PFM) during the last six years, but the country's public finance management domain is still facing several problems that are at odds with sound PFM practices. The researchers set out to learn how much of an impact the Integrated Financial Management Information System (IFMIS) had on county governments' use of Financial Management in Kenya. The research set out to determine how the IFMIS revenue system has influenced financial management in Kenya's county administrations. Descriptive and causal research methods were used. A total of 302 workers from the Treasury Departments of the County Governments of Kakamega, Busia, Vihiga, Trans Nzoia, and Bungoma were surveyed. This included 44 Procurement officers, 46 internal auditors, 89 Accountants, 87 Finance officers, and 42 Revenue officers. The 172 participants were chosen by stratified random selection. Questionnaires were used to gather the primary data. Content and construct validity were established via the pilot research, and reliability was calculated using the Cronbach Alpha statistic. Data was summarized using frequencies, means, standard deviations, and percentages using descriptive analysis, while correlation and multiple linear regression were employed using SPSS 26.0 for inferential analysis. At the 5% threshold of significance, hypotheses were examined. Models were developed and data was tabulated. The results showed that the County Governments in Western Kenya's financial management varied greatly (R² = 0.443, P 0.0001) depending on the revenue method they used. At a significance threshold of P<0.05, the regression coefficient for IFMIS revenue system was 0.670, indicating that a one-unit shift in the IFMIS revenue system would lead to a 0.670-unit shift in financial management in the County governments in Western Kenya. Therefore, the research indicated that the IFMIS revenue system had a considerable impact on the budgetary practices of Kenya's county governments. To guarantee sustainable accomplishment and effective service delivery to the communities, the report suggests that county governments ought to digitize all tax collecting platforms.