INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEMS, ORGANIZATIONAL RESOURCES AND FINANCIAL MANAGEMENT IN COUNTY GOVERNMENTS, KENYA
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Sep 23, 2025
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Abstract
The purpose of the research was to determine whether or not the implementation of the Integrated Financial Management Information System (IFMIS), organisational resources improved the financial management of county governments in Kenya. The descriptive survey design and the causal research methodology were used for this study. The target population consisted of 302 workers working in the Treasury Department in the county governments of Kakamega, Busia, Vihiga, and Bungoma. This included 44 procurement officers, 46 internal auditors, 89 accountants, 87 finance officers, and 42 revenue officers. The selection of the 172 respondents was accomplished via the use of a method known as stratified random sampling. The questionnaire method was used to acquire the primary data. Pilot research was done to assess the content and construct validity, and Cronbach Alpha was used to determine the dependability of the information. Using descriptive and inferential statistics, an analysis of the quantitative data was carried out. Inferential analysis included correlation analysis and multiple linear regression analysis, while descriptive analysis was used to summarize the data into frequency, mean, standard deviation, and percentage. The threshold of significance used in the testing of hypotheses was 0.05. The information was laid up in tables, and several models were developed. The study established that IFMIS significantly improves financial management in county governments, and its effect is strongly moderated by organizational resources. The findings showed that adequate financial allocation, information communication technology (ICT) infrastructure, and staff capacity amplify IFMIS outcomes, enhancing accountability and efficiency. It was concluded that IFMIS alone is insufficient without supportive resources. The study therefore recommends continuous investment in infrastructure, training, policy enforcement, and leadership support to ensure counties maximize IFMIS benefits and achieve sustainable financial governance.
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References
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Osano, N. A., and Ngugi, K. (2018). Factors affecting the implementation of integrated financial management information system in the public sector in Kenya. International Academic Journal of Economics and Finance, 3(2), 265-291.
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Simiyu, S. N., and Kaplelach, M. S. (2015). Integrated Financial Management Information System Implementation and Public Finance Management in Kilifi County, Kenya.
USAID. (2018). Guide to public financial management reform. Washington, DC: United States Agency for International Development.
Visaria, S. (2019). Legal reform and loan repayment: The microeconomic impact of debt recovery tribunals in India. American Economic Journal: Applied Economics, 1(3), 59-81.
Wagithunu, N. M., Muthee, J., and Thinguri, R. (2016). A Critical Analysis of School Principals’ Competence in Financial Management in Kenya: Organizational resources in Educational Planning and Management. Journal of Education and Practice, 5(25), 103-107.
World Bank. (2011). Integrated Financial Management Information Systems: Guidelines for effective implementation. Washington, DC: World Bank.
Worlu, R. E., Belonwu, C., & Ajayi, O. (2016). Organizational resources and performance of selected manufacturing firms in Nigeria. International Journal of Business and Management Review, 4(5), 1–14.
Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed.). New York: Harper and Row.
Yang, H. D., Kang, S., Oh, W., and Kim, M. S. (2018). Are all fits created equal? A nonlinear perspective on task-technology fit. Journal of the Association for Information Systems,14(12), 2.
Ameen, A., and Ahmad, K. (2016). Towards harnessing financial information systems in reducing corruption: a review of strategies. Australian Journal of Basic and Applied Sciences, 6(8), 500-836.
Aminatu, M. (2015). The Impact of Integrated Financial Management System on Economic Development: The Case of Ghana. Korea Review of International Studies, 5(5), 61-80.
APEC. (2015). IFMIS development and cooperation among APEC economies. Asia-Pacific Economic Cooperation Secretariat.
Chado., M. (2015). The effect of integrated financial management information system on the financial management of public sector in Kenya (Doctoral dissertation, University of Nairobi).
Chepkwony, G. K., and Okello, B. (2016).Determinants of Procure-to-Pay System Adoption in the County Government of Bomet, Kenya. Journal of Investment and Management, 5(6), 140-150.
Cheruiyot, M. P. (2018). Effect of Public Financial Management Practices on Financial management of County Governments in Kenya (Doctoral dissertation, JKUAT-COHRED).
Controller of Budget (CoB). (2017). Annual County Governments Budget Implementation Review Report. Nairobi: Office of the Controller of Budget.
Diefenbach, T. (2019). New public management in public sector organizations: the dark sides of managerialistic ‘enlightenment’. Public administration, 87(4), 892-909.
Donaldson, L. (2001). The Contingency Theory of Organizations. Thousand Oaks, CA: Sage Publications.
Donaldson, L. (2006). The contingency theory of organizational design: Challenges and opportunities. In R. M. Burton, B. Eriksen, D. D. Håkonsson, & C. C. Snow (Eds.), Organization design: The evolving state-of-the-art (pp. 19–40). Springer.
Galunic, C., & Eisenhardt, K. M. (1994). Renewing the strategy-structure-performance paradigm. Research in Organizational Behavior, 16, 215–255.
Gcora, N., and Chigona, W. (2019). Post-implementation evaluation and challenges of Integrated Financial Management Information Systems for municipalities in South Africa. South African Journal of Information Management, 21(1), 1-12.
Ginsberg, A., & Venkatraman, N. (1985). Contingency perspectives of organizational strategy: A critical review of the empirical research. Academy of Management Review, 10(3), 421–434.
Goodhue, D. L., & Thompson, R. L. (1995). Task-technology fit and individual performance. MIS Quarterly, 19(2), 213–236.
Government of Kenya (GoK). (2018). Report of the Auditor General on Financial Statements of County Governments for the Year Ended 30 June 2018. Nairobi: Government Printer.
Hawo, C. M. (2015). The effect of integrated financial management information system on the financial management of public sector in Kenya (Doctoral dissertation, University of Nairobi).
Kenya National Audit Office (KENAO). (2018). Annual Report of the Auditor General on the Financial Operations of County Governments for the Financial Year 2017/2018. Nairobi: Government Printer.
KIMAITE, N. (2016). Organizational resources and Organizational Financial management of Commercial Banks in Uganda: A Case of Stanbic Bank Uganda Limited.
Kimiti, P. G., and Kilika, J. M. (2018). Organizational Resources, Industry Velocity, Attention Focus and Firm's Financial management: A Review of Literature. International Journal of Business and Management, 13(5), 185-200.
Laizer, E. G., and Suomi, R. (2017). Evaluation of Integrated Financial Management Information System (IFMIS) in Malawi. In ECISM 2017 11th European Conference on Information Systems Management (p. 139). Academic Conferences and publishing limited.
Maina, P. W. (2019). Determinants of integrated financial management information system implementation, in the national government departments in Meru County. Journal of management information systems, 9(1), 7-24.
Mambo, P. N., Ombui, K., and Kagiri, A. (2015). Factors influencing implementation of e-procurement in the national government: a case of the ministry of interior and co-ordination of national government. Strategic Journal of Business and Change Management, 2(1), 12-25.
Mbaka, A. O. (2017). Influence of Integrated Financial Management Information System on Supply Chain Effectiveness: A Case of Kirinyaga County Government (Doctoral dissertation, United States International University-Africa).
Mburu, M. M., and Ngahu, S. (2016). Influence of integrated financial management information system on financial management in county government of Nakuru, Kenya. International Journal of Economics, Commerce and Management, 4(5), 777-793.
Ministry of Finance, Planning and Economic Development (Uganda). (2015). Background to the Budget 2015/16 Fiscal Year. Kampala: Ministry of Finance.
Mohamud, F. H. (2018). Factors Influencing Implementation of Integrated Financial Management Information System (IFMIS) In Puntland’s Public Institutions: A Case of Garowe City. IOSR Journal of Business and Management. 20(5), 06-24.
Moyer, R. C., McGuigan, J. R., Rao, R. P., and Kretlow, W. J. (2015). Contemporary financial management. Nelson Education.
Muthoni, P. (2017). The Effect Of Integrated Financial Management Information System On The Financial Management In Ministry State Departments In Kenya. Electronic Government, An International Journal, 5(4), 420-444.
Mutongwa, S. M., and Abeka, S. O. (2017). Factors affecting integrated financial management information system application in Kenyan public sector.
Mutua, C. N., and Juma, D. (2018). Influence of Strategic Sourcing On Procurement Financial management of Kenyan Commercial Banks. The Strategic Journal of Business and Change Management, 5(2), 1415-1445.
Mwai, L., Namada, J., & Katuse, P. (2018). Influence of organizational resources on organizational effectiveness of NGOs in Kenya. International Journal of Academic Research in Business and Social Sciences, 8(10), 1415–1434.
Ndaiga, P. M. (2016). Determinants of the adoption of an integrated financial management system A case of Mombasa county government (Doctoral dissertation, University of Nairobi).
Nganyi, S.,Jagongo, A., and Atheru, G. K. (2019) Determinants of Government Expenditure on Public Flagship Projects in Kenya. International Journal of Economics and Finance, 11(6), 133-133.
Njeru, B. (2017). Effect Of Integrated Financial Management Information System On Public Expenditure Management In Kenya. European Financial Management, 2(2), 223-245.
Njihia, A. W., and Makori (2015) Determinants of Perfomance of Integrated Financial Management Information System in Public Sector in Kenya: a Case of National Treasury. Journal of Business and Change Management, 2(90), 1243-1284.
Odoyo, F. S., Adero, P. and Chumba, S. (2014). Integrated financial management information system and its effect on cash management in Eldoret West District Treasury, Kenya. International Journal of Social Sciences and Entrepreneurship, 1(2), 13-26.
Ogachi, D. O., & Muturi, W. (2016). Factors influencing the implementation of integrated financial management information systems in Kenyan county governments: A case of Kisii County. International Journal of Economics, Commerce and Management, 4(4), 1091–1108.
Ogachi, V., and Muturi, W. (2016). Factors Affecting the Implementation of Integrated Financial Management Information Systems in Selected County Governments in Kenya: IOSR. Journal of Business and Management, 18(10), 95-104.
Ongeti, W. J. (2014). Organizational resources, corporate governance structures and performance of Kenyan state corporations. (Doctoral thesis, University of Nairobi).
Osano, N. A., and Ngugi, K. (2018). Factors affecting the implementation of integrated financial management information system in the public sector in Kenya. International Academic Journal of Economics and Finance, 3(2), 265-291.
Reddick, C. G. (2010). Information Technology and Emergency Management. In Homeland Security Preparedness and Information Systems: Strategies for Managing Public Policy (pp. 112-135). IGI Global.
Simiyu, S. N., and Kaplelach, M. S. (2015). Integrated Financial Management Information System Implementation and Public Finance Management in Kilifi County, Kenya.
USAID. (2018). Guide to public financial management reform. Washington, DC: United States Agency for International Development.
Visaria, S. (2019). Legal reform and loan repayment: The microeconomic impact of debt recovery tribunals in India. American Economic Journal: Applied Economics, 1(3), 59-81.
Wagithunu, N. M., Muthee, J., and Thinguri, R. (2016). A Critical Analysis of School Principals’ Competence in Financial Management in Kenya: Organizational resources in Educational Planning and Management. Journal of Education and Practice, 5(25), 103-107.
World Bank. (2011). Integrated Financial Management Information Systems: Guidelines for effective implementation. Washington, DC: World Bank.
Worlu, R. E., Belonwu, C., & Ajayi, O. (2016). Organizational resources and performance of selected manufacturing firms in Nigeria. International Journal of Business and Management Review, 4(5), 1–14.
Yamane, T. (1967). Statistics: An Introductory Analysis (2nd ed.). New York: Harper and Row.
Yang, H. D., Kang, S., Oh, W., and Kim, M. S. (2018). Are all fits created equal? A nonlinear perspective on task-technology fit. Journal of the Association for Information Systems,14(12), 2.