Abstract:
Budgeting has become a fundamental issue for many organizations and
business entities across the globe. Despite the availability of a legal
framework on budgetary processes in the public sector, County Governments
are still facing challenges such as delays in payment to suppliers, budget
deficit, stalled projects, and poor development records. It is on this basis that
this study sought to investigate the relationship between monitoring and
financial performance of the County Government of Kericho. The study was
guided by expenditure theory. The study adopted a correlation survey
research design. The target population for the study was 3,848 employees
from 12 departments of the County Government of Kericho. A stratified
sampling technique method and simple random sampling technique were
used to ascertain the sample size for the study. Data were analyzed using
descriptive and inferential statistics. Descriptive statistics were presented by
frequency tables, charts, and graphs, while inferential statistics were
presented by correlation and regression models. The findings established that
there was a significant statistical relationship between budgetary monitoring
and financial performance (β = 0.901, p < 0.05). The study concludes that the
budgetary monitoring had significant impact on financial performance of
County Government of Kericho. The study recommends that for an efficient
budgetary process, the county government should set realistic revenue targets
to ensure that expected expenditure matches expected incomes and also
acquire and train staff involved in budget planning for an efficient planning
process. Participation from other stakeholders was also recommended to
enhance the implementation process. The study recommends that further
research on determinants of budget implementation in county governments
should be carried out.
