The effect of integrated financial management Information systems on the financial management Of public sector in kenya: a case of the kenyan Ministries

Abstract

This study discusses the subject of the effects of Integrated Financial Management Information Systems (IFMIS) on the financial management of public sector. The IFMIS provides a critical financial management solution for countries whose administrative and economic infrastructure is obsolete, or has been destroyed through war and years of conflict. There is broad agreement that a fully functioning IFMIS can improve governance by providing real-time financial information that financial and other managers can use to administer programs effectively, formulate budgets, and manage resources. Sound IFMIS systems, coupled with the adoption of centralized treasury operations, can not only help developing country governments gain effective control over their finances, but also enhance transparency and accountability, reducing political discretion and acting as a deterrent to corruption and fraud. The study covered 42 government Ministries in Kenya where 30 accountants involved in the use of Integrated Financial Management Information Systems were surveyed and data collected using both primary and secondary questionnaires and review of economic survey and statistical abstract. The study found out that IFMIS has greatly contributed to improvement in financial management in Kenya. The study recommended that IFMIS should therefore be rolled out to all public sector departments in the country.