Influence of Governance Practices on Performance of County Governments in Kenya

Abstract

The Kenyan government acknowledges that there has been poor performance in the public sector over the years, especially in the management of public resources, which has hindered the realization of sustainable economic growth. Governance presents the single biggest opportunity for operational efficiency in any organization; therefore, its adoption is paramount in public sector management. The study examined the influence of governance practices on the performance of county governments in Kenya. Specifically, the study sought to establish how internal controls, stakeholder participation, internal audit standards, and transparency influence the performance of county governments in Kenya. The study employed a descriptive research design. The target population was Heads of Departments in all Ministries, Chief Officers of all Ministries, and Members of the County Assembly. A structured questionnaire was used to collect data. Data gathered from the questionnaires administered was analyzed with the help of SPSS and Microsoft Excel. The study used multiple linear regression and correlation analysis to show the relationship between the variables. The study findings indicated that internal controls, stakeholder participation, internal audit standards and transparency have a positive and significant relationship with on performance of county governments' in Kenya. The entire null hypotheses was rejected. The study recommends that the County Government should encourage stakeholders to participate by incorporating their views in governance processes. A feedback mechanism should also be delivered where stakeholders are informed of the process of their participation and the key decisions that result from the participation. Further, the study recommends that there is need for the county government to come up with its calendar of events on its activities. Keywords: Internal Controls, Stakeholder Participation, Internal Audit Standards, Transparency, Performance & County Government.