FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL SUSTAINABILITY OF WORLD BANK FUNDED PROJECTS IN MOMBASA COUNTY

Abstract

The study was carried out with the general objective of examining the financial management practices and financial sustainability of World Bank funded projects in Mombasa County. The study was guided by the following theories budgeting theory, agency theory, contingency theory, and cash management theory. Descriptive research design was used in this study. The target population of the study was 186 project managers from the various strata. The population sample size of this study comprised of 127 project managers drawn from the county government of Mombasa, World Bank appointees, community proposed members and experts. Questionnaires were used in primary data collection. Descriptive statistics (frequencies, measures of central tendency including mean and standard deviation) were used to give the expected summary statistics of variables being studied. Inferential data analysis was done using multiple regression analysis. Multiple regression analysis was used to establish the relations between the independent and dependent variables. The results of the study indicated that in relation to the first objective that examined the influence of budgeting practice on financial sustainability of donor funded projects, budgeting practice influences the sustainability of donor funded projects. In relation to the second objective, financial control practice was fund to have a significant influence on financial sustainability of donor funded projects in Kenya. Further, financial reporting practice was found to have a significant effect on financial sustainability of donor funded projects in Kenya. Finally, in relation to the final objective that touched on cash management practice, it was found out that cash management practice has a positive and significant influence on financial sustainability of donor funded projects in Mombasa County, Kenya. Overall, budgeting practice had the greatest effect on financial sustainability of donor funded projects in Kenya’s Mombasa county followed by financial control practice then cash management while financial reporting practice had the least effect on financial sustainability of donor funded projects in Kenya’s Mombasa county. All the variables were thus significant with their p- values less than 0.05. Key words: Budgeting, Financial Control, Financial Reporting, Cash Management, Sustainability CITATION: Nguni, J. M., & Wekesa, M. W. (2023). Financial management practices and financial sustainability of world bank funded projects in Mombasa County. The Strategic Journal of Business & Change Management, 10 (4), 851 – 865. http://dx.doi.org/10.61426/sjbcm.v10i4.2790