Effect of Budgeting Practices on Financial Performances of County Governments in Kenya


  • David A. Sande University of Nairobi
  • Kennedy Okiro University of Nairobi
  • Joshua Wanjare University of Nairobi
  • Nixon Omoro University of Nairobi




The study aimed to determine how budgeting practices influence the financial performance of county governments in Kenya. The research was anchored on the public budget theory, which provides a framework for understanding how budgeting practices can affect the financial performance of county governments. The research adopted a pragmatism research philosophy and utilized an ex-post facto research design. The target population consisted of the 47 county governments in Kenya, and the study selected the controller of budget from each county as the respondents. The pilot study involved two counties, which were not included in the final study. A questionnaire was used to collect primary data, and the response rate achieved was 95.56%. The study employed both inferential and descriptive statistics, performing regression and correlation analysis. The findings of the study indicated that budgeting practices have a positive and significant effect on the financial performance of county governments. The regression analysis revealed a significant relationship between budgeting practices and financial performance (R2=0.437, F=8.102, p=0.000). Based on the findings, the study concluded that budgeting practices positively and significantly affect the financial performance of county governments in Kenya. The study recommends that county governments adopt appropriate budgeting practices, including budget planning, budget coordination, budget evaluation, and budget reporting, among others, to improve their financial performance.

Keywords: Budgeting Practices, Financial Performances, County, Governments, Kenya

Author Biographies

David A. Sande , University of Nairobi

Student, Department of Accounting and Finance, University of Nairobi

Kennedy Okiro, University of Nairobi

Department of Accounting and Finance, University of Nairobi

Joshua Wanjare , University of Nairobi

Department of Accounting and Finance, University of Nairobi

Nixon Omoro, University of Nairobi

Department of Accounting and Finance, University of Nairobi


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How to Cite

Sande, D. A., Okiro, K., Wanjare , J., & Omoro, N. (2023). Effect of Budgeting Practices on Financial Performances of County Governments in Kenya. Journal of Finance and Accounting, 7(5), 62–77. https://doi.org/10.53819/81018102t30103




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