INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM AND PERFORMANCE OF GOVERNMENT MINISTRIES IN KENYA
Abstract
The adoption of an integrated financial management information system (IFMIS) has been promoted as Kenya’s best course of action for explaining the consequences of government embezzlements that have plagued the government’s operations since independence. Adopting an IFMIS streamline financial processes, improve management and sourcing practices within the government, and provide standard, accurate financial statements in real time. The goal is to reduce instances of unfair government behaviour, such as corruption and fraud, and ethical issues by promoting accountability and transparency. Despite the implementation of the system, instances of improper use of public funds and subpar performance by ministries continue to rise. This study aims to examine if the integrated financial management information system helps to increase the performance of government ministries in Kenya. Particularly it examines the effect of staff competence in IFMIS, resource allocation in IFMIS, internal control in IFMIS and system quality in IFMIS on the performance of government ministries in Kenya. The study was anchored on technological acceptance theory, systems theory and resource-based view theory. The study adopted a descriptive research design. The study targeted 6 selected government ministries. Stratified random sampling was deployed to gather information from operational staff, middle-level managers and top executives notably 384 participants across these groups. Data was collected primarily using questionnaires. Descriptive and inferential analysis was used to analyse data. All ethical considerations were duly followed. The outcome yielded that staff competence in IFMIS significantly and positively affects the performance of government ministries; internal control in IFMIS insignificant yet positively affects the performance of government ministries; while a significant and positive effect of system quality in IFMIS on the performance of government ministries in Kenya was unravelled. The survey concludes that an integrated financial management information system has the potential to enhance the performance of government ministries in Kenya. The study advised that ministries should prioritize training programs to enhance the knowledge, skills, and competencies of their staff members. Training sessions should focus on areas relevant to their roles and responsibilities, such as financial management, technical skills, leadership, and communication. Continuous professional development opportunities would help staff members stay updated with industry best practices and improve their performance.
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