AUDIT COMMITTEES AND THE UTILIZATION OF FINANCIAL RESOURCES IN COUNTY GOVERNMENTS IN KENYA
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May 14, 2026
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The purpose of this study was to assess the effect of audit committees on the utilization of financial resources in county governments in Kenya. Specifically, the study determined the effect of audit committee composition, audit committee competences and experience, and audit committee meetings on the utilization of financial resources in these devolved units. A cross-sectional survey research design was adopted. The study targeted the 47 county governments in Kenya, where the units of observation were members of audit committees established by county executives and county directors of finance. Primary data was collected using a structured questionnaire. Both descriptive and inferential analysis were used to analyse the data. The study found that audit committee composition, audit committee competences and experience, and audit committee meetings had positive and significant individual and joint effects on the utilization of financial resources in county governments in Kenya. Consequently, the null hypotheses that these audit committee factors had no significant effect on utilization of financial resources were rejected. The study concluded that audit committees positively and significantly affected the utilization of financial resources in county governments in Kenya. The study recommended diverse audit committee membership, more women and independent directors, stronger policy frameworks, transparent appointment processes, qualified members, independent decision-making, adequate meeting duration, and alignment with county reporting and audit cycles.
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Edow, A. A., & Muturi, W. (2024). Influence of internal financial control systems on resource utilization in county governments in Kenya. International Journal of Social Sciences Management and Entrepreneurship, 8(1), 472–482.
Eiser, D. (2020). Will the benefits of fiscal devolution outweigh the costs? Considering Scotland’s new fiscal framework. Regional Studies, 54(10), 1457–1468.
El-Deeb, M. S., Alarabi, Y., & Mohamed, A. (2024). The role of audit committee characteristics in improving the risk disclosure of companies examining the moderating role of audit quality. Future Business Journal, 10(1), 1–20.
ElHawary, E. (2021). Audit committee effectiveness and company performance: Evidence from Egypt. Journal of Governance and Regulation, 10(2), 134–156.
Gacheru, M. M. (2020). Effect of audit committee characteristics on the audit expectation gap: Evidence from state corporations in Kenya (Doctoral dissertation, Jomo Kenyatta University of Agriculture and Technology).
Gaitho, P. R. (2018). An assessment of financial reporting and auditing practices in county governments of Kenya. Journal of Public Administration and Governance, 8(4), 81–93. https://doi.org/10.5296/jpag.v8i4.13707
Gathogoh, J. K., King’ori, J., & Nderitu, M. (2023). Influence of audit committee competence on financial performance of deposit-taking Saccos in Nairobi County, Kenya. The International Journal of Business & Management, 11(11), 41–52.
Githinji, R. M. (2013). Factors influencing performance of audit committees in state corporations: A case of the Kenya Urban Roads Authority (Master’s project, University of Nairobi).
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