Mediating Effect of Public Participation on the Relationship between Budgeting Practices and Financial Performance of County Governments in Kenya
DOI:
https://doi.org/10.53819/81018102t30104Abstract
Public participation in budgeting practices has long been seen as a mechanism that leads to improved governance and financial outcomes. The study sought to examine the influence of public participation on the relationship between budgeting practices and the financial performance of county governments in Kenya. The study was grounded in the public budget theory and employed a pragmatic research philosophy and an ex-post facto research design. The study's target population included 47 county governments in Kenya. Data was collected via questionnaires, targeting the controller of budget in each county. The study employed both inferential and descriptive statistical analyses and performed regression and correlation analyses. The correlation results revealed that public participation and financial performance reveals a significant and positive influence of public participation on financial performance at County Governments (r=.555, p=0.000). The coefficient for budgetary practices (BP) is 0.612, indicating a positive and significant effect on financial performance. The coefficient for public participation (PP) is 0.342, indicating a positive and significant effect on financial performance. The t-values of 5.948 (BP) and 4.417 (PP), along with p-values of 0.000, suggest that both budgetary practices and public participation have statistically significant relationships with financial performance. The regression results indicate that both budgetary practices and public participation have positive and significant effects on the financial performance of County Governments in Kenya. Based on these results, the study concluded that public participation partially mediates the relationship between budgeting practices and financial performance in county governments. Therefore, the study recommends promoting public participation in respective counties as a strategy to enhance the financial performance of County governments.
Keywords: Mediating Effect, Public Participation, Budgeting Practices, Financial Performance, County Governments
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