Financial Management Practices and Quality of Financial Governance of Nairobi City County Government, Kenya

Abstract

The financial statement Auditor General report of Nairobi County Government has had unfavorable audit opinions since the establishment of County Government in 2013. An unfavorable opinion means the auditor has gathered sufficient audit evidence and concluded that the financial statements include material and extensive inaccuracies. This study sought to investigate the effect of financial management practices on quality of financial governance in Nairobi City County Government, Kenya. The study's target population was 425 employees of Nairobi City County Government's finance and economic planning division. Using a stratified random sampling technique, a sample of 85 employees was chosen. Data was analyzed using descriptive and inferential statistics. Results revealed that revenue mobilization strategy, budgetary techniques, financial reporting, and integrated financial management system had a positive and significant influence on quality of financial governance. The study recommended that counties and other local governments should ensure there is sufficient revenue administration and mobilization policies, budgeting, and financial reporting policies as well as proper utilization of integrated financial management system to achieve quality financial governance.