PUBLIC FINANCIAL MANAGEMENT PRACTICES, GOVERNANCE FRAMEWORK, TECHNOLOGICAL INFRASTRUCTURE AND OWN SOURCE REVENUE BY SELECTED COUNTY GOVERNMENTS IN KENYA

Abstract

In Kenya, only 11 out of 47 counties can finance over 10% of their budgets, indicating a heavy reliance on National Government transfers for nearly 90% of their funding. “This study aimed to examine the impact of public finance management practices, governance frameworks, and technological infrastructure on the own-source revenue collection by county governments. “The study focused on the effects of public finance management practices on revenue collection, the mediating role of governance frameworks, and the moderating influence of technology. The New Public Management theory served as the anchor theory. Utilizing a positivism research paradigm and a descriptive design, the study analyzed the 11 best performing counties for revenue generation in the 2022/2023 financial year. A sample of 284 county officials was selected through stratified random sampling, with data collected via structured questionnaires. The findings revealed a strong positive correlation between public finance management practices and increased own-source revenue, emphasizing the role of automated revenue collection in enhancing efficiency and transparency. The governance framework was found to mediate this relationship, while technological advancements improved compliance and revenue generation capabilities. Statistical analysis indicated a moderate positive correlation between public finance management practices and own-source revenue, with project planning accounting for 30.6% of revenue variations. The study confirmed a direct relationship between public finance management practices and revenue generation, underscoring the importance of robust public financial management. Recommendations include developing advanced automated revenue collection systems, such as mobile payment platforms and Integrated Financial Management Systems, to enhance accuracy and transparency. Additionally, comprehensive training programs for financial management officials and strengthening governance frameworks through clear legal regulations are essential for optimizing revenue generation in Kenyan counties.””