The Challenges of Budget Implementation in Public Institutions: a Case Study of University of Nairobi

Abstract

This study focused on the factors that influence budget implementation in public institutions in Kenya, a case study of University of Nairobi. The report gives an overview of the institution and the budget process it has adopted. Public institutions which undertake budgeting on a hierarchical basis face a situation at each level in the hierarchy, there is a possibility that the original request will be changed in one way or another as the various budget are processed further and aggregated. One of the major challenges therefore that affect these budgets with regard to implementation is that since those that made the initial budgets, which were later amended during aggregation could resist the proposed budgets. The study aimed at investigating the challenges of budget at University of Nairobi. To achieve objective of these study a descriptive study was done. The researcher used both primary and secondary method of collecting data. The respondents constituted Eight (8) Administrators, six (6) Bursars from the colleges of the university, eight (8) senior representative members of the budget Committee from Finance, Eleven (11) staff in finance and administration involved in budget preparation. The secondary data sources were used to supplement the data received from questionnaire. A content analysis and descriptive analysis were used. The data was presented using statistical measures pie charts, bar graphs, frequency tables and graphical presentations. The study established the challenges encountered in budget implementation. The study concludes that University of Nairobi does not have efficient budget preparation procedures. Other challenges included insufficient funds allocated to department, institutional weakness which hindered effective budget implementation and the methods used to allocate funds to user department were unsatisfactory. The study further concludes that University of Nairobi faces various challenges in budget implementation. The study recommends that for University of Nairobi to curb challenges in budget implementation there is need for effective procedures and guidelines in the allocation of funds and operational implementation policies.