EFFICIENT PUBLIC FINANCIAL MANAGEMENT PRACTICES: KEY TO SUSTAINING DEVOLUTION IN KENYA

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Published May 2, 2026

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PAUL NDONYE
Student, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya
JOHN MUNGAI, PhD
Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya
SALOME MUSAU, PhD
Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

Abstract

Devolution in Kenya, established under the 2010 Constitution, is critical in local governance, economic development, service delivery, and grassroots community development. This necessitates optimizing revenue streams, rigorously controlling expenses, and prudently managing investments to maximize returns while minimizing risks. This research, therefore, investigated public financial management practices' impacts on the financial sustainability of Kenya’s Makueni County, specifically targeting financial planning, revenue mobilization, financial reporting, and financial controls. Agency and fiscal decentralization theories underpinned the study. Employing a positivist paradigm (philosophy) with an explanatory design, 118 respondents across various departments formed the target population. The study utilized both primary and secondary data, where the analysis was conducted via descriptive statistics and inferential analysis. The findings revealed that financial planning, revenue mobilization, and financial controls significantly enhance financial sustainability, while financial reporting alone has an insignificant direct effect. The study concludes that effective PFM practices are essential for achieving financial sustainability in devolved governments. sector.

Article Details

Issue
Vol 7 No 1 (2026)
Section
Articles
Author Biographies

PAUL NDONYE, Student, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

Student, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

JOHN MUNGAI, PhD, Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

SALOME MUSAU, PhD, Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

Senior Lecturer, School of Business, Economics and Tourism, Department of Accounting and Finance, Kenyatta University, Kenya

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