An Analysis of Policy Implementation through Budgetary Allocation and Actual Expenditure by Ministries of the Government of Kenya

Ndung’u, Stephen (2008) An Analysis of Policy Implementation through Budgetary Allocation and Actual Expenditure by Ministries of the Government of Kenya. Masters thesis, Kenyatta University.

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Abstract

In Kenya, the link between policies, budgeting, subsequent expenditure and policy implementation has not been an easy one to establish. The absence of a clear symmetry between these important and related functions of the government constitutes one of the greatest weaknesses in Kenya's public finance management. The purpose of this study was thus to analyze policy implementation through budgetary allocations and actual expenditure by ministries of the government of Kenya, to identify factors that influence budgetary allocations, evaluate policy implementation by ministries of the government of Kenya, evaluate efficiency of actual expenditure by ministries in Kenya and determine the relationship between actual expenditure and policy implementation among other variables. In conducting the study, the research design used was diagnostic. The population of the study consisted of all the 34 ministries and pertinent data was collected using questionnaires. Descriptive data analysis techniques were used in form of frequency distribution tables to show the various findings. Besides, other data analysis methods such as cross tabulation, chi square, Cramer's V, Phi and factor analysis were used to determine if there is any relationship between the variables and the strength of the association. The overall conclusion of this study was that ministries are relatively efficient in policy implementation and other day to day activities given the circumstances in which they operate in. However a major drawback in the implementation of policies was noted to be the limited funding from the exchequer, procurement difficulties, interministerial conflicts, partial disbursement of approved budget and lack of information by the spending units which has to a large extent affected adversely this efficiency. Thus there is need to address the above problems through formation of policy formulation groups, increased funding by exchequer, improvement of communication channels between ministries and spending units, increasing the rate of resources absorption, streamline the procurement process, harmonizing and coordinating activities of various ministries. It was noted that ministries are able to follow prudent and judicious procedures in allocation and spending of budgetary resources with factors like the set priorities, level of development and poverty prevalence playing a key role. It was also established that there is a very strong relationship between actual expenditure and policy implementation but on the other hand as expenditure increases, transparency decreases and prioritization of policies is adversely affected by increasing political patronage as well as clearing of ministerial baggage such as resolving stalled projects and reduction of pending bills. It's imperative that ministries improve in each and every one of the areas mentioned above.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HJ Public Finance
Divisions:	Africana
Depositing User:	Tim Khabala
Date Deposited:	12 Jan 2018 12:08
Last Modified:	12 Jan 2018 12:08
URI:	http://thesisbank.jhia.ac.ke/id/eprint/3073

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