| dc.description.abstract | Financial Management Reforms are developments and changes overtime in the field of
finance. They are important since they lead to prudent allocation of financial capital.
Economic performance deals with the changes on the economic value for money, wealth,
debt and investment. The study used the economic unit performance contracting results
as the measure of performance. Despite increased reforms in public sector financial
management approaches, the Kenyan economic performance has not been impressive
leading to a situation referred to as “the paradox of plenty” i.e. plenty financial reforms
without much impact in the economy. The study therefore sought to answer the question
whether there was relationship between financial management reforms and the economic
performance of the public sector in Kenya. The study’s main objective was to determine
the relationship between financial management reforms and the economic performance of
the public sector in Kenya. The study used descriptive survey design. The population was
the 42 ministries and departments that were in existence during the period of the study.
The study was carried in Nairobi. Data was collected from secondary and primary
sources. Primary source was from senior managers from administration, finance,
accounting, audit departments through the use of questionnaires. Information was
obtained for five (5) years between financial years 2007/2008 – 2011/2012. Analysis was
done using multiple regression and SPSS for quantitative analysis. The study established
three types of financial reforms .They include budgetary, accounting and auditing
reforms. It further established that there was notable increase in the number of financial
reforms undertaken by the Ministries within the study period. The study also showed that
majority of the financial reforms were part of the performance contracting targets. In
addition, the study revealed that majority of the respondents agreed that the financial
reforms achieved more than 50% of their intended objectives. The study indicated an
improvement in the economic performance on the Ministries/departments over the five
(5) years. The study further revealed that there was a strong positive correlation between
financial management reforms undertaken and the economic performance of various
Ministries and departments. There was therefore a demonstration that there should be an
increase in the number of financial reforms for improved economic performance that are
part of performance targets of the public sector and also see to it that the reforms meet
their intended objectives through proper monitoring and evaluation of the reforms prior
and after being undertaken. This would greatly improve the performance of the public
sector which translates to better economic performance of the country | en |
