PUBLIC FINANCIAL MANAGEMENT PRACTICES AND REVENUE GROWTH OF NAIROBI CITY COUNTY, KENYA

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Published Jun 23, 2026

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ZAMZAM ALI IBRAHIM
Department of Accounting and Finance, Kenyatta University, Kenya
SALOME MUSAU, PhD
Department of Accounting and Finance, Kenyatta University, Kenya

Abstract

Revenue growth remains a critical component in enhancing the capacity of county governments to finance public services, infrastructure development, and socio-economic transformation. Despite various public financial management reforms implemented by county governments in Kenya, many counties continue to experience challenges in meeting their revenue targets. Nairobi City County has particularly faced stagnation in revenue growth despite increasing demands for public services and urban infrastructure. Reports indicate that the county recorded only a marginal growth in revenue collection while tax compliance levels remain below expected standards. This study sought to examine the effect of public financial management practices on revenue growth of Nairobi City County, Kenya. Specifically, the study examined the effect of revenue mobilization practices, budgeting practices, financial reporting practices, and monitoring and evaluation practices on revenue growth. The study was anchored on New Public Management Theory, Resource-Based View Theory, Agency Theory, and Stewardship Theory. A descriptive research design was adopted. The target population comprised 486 employees from the Finance and Economic Planning Department of Nairobi City County Government. A stratified random sampling technique was used to select a sample of 146 respondents. Primary data were collected using semi-structured questionnaires, while secondary data were obtained using a data collection sheet. Quantitative data were analyzed using SPSS Version 20 through descriptive statistics, Pearson correlation analysis, and multiple regression analysis. The findings revealed that revenue mobilization practices had a positive and statistically significant effect on revenue growth (β = 0.184, p = 0.046). Budgeting practices had a positive and significant effect on revenue growth (β = 0.306, p = 0.004) and emerged as the strongest predictor of revenue growth. Financial reporting practices also positively and significantly influenced revenue growth (β = 0.300, p = 0.020), while monitoring and evaluation practices had a positive and statistically significant effect on revenue growth (β = 0.281, p = 0.007). The study concludes that effective public financial management practices significantly contribute to revenue growth in Nairobi City County. The study recommends strengthening revenue mobilization systems, institutionalizing performance-based budgeting, enhancing transparency in financial reporting, and improving monitoring and evaluation frameworks to promote sustainable revenue growth.

Article Details

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

ZAMZAM ALI IBRAHIM, Department of Accounting and Finance, Kenyatta University, Kenya

Department of Accounting and Finance, Kenyatta University, Kenya

SALOME MUSAU, PhD, Department of Accounting and Finance, Kenyatta University, Kenya

Department of Accounting and Finance, Kenyatta University, Kenya

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