Influence of financial management agents on implementation of Global fund projects: A case of projects in Kibera slum, Kenya

Abstract

Financial management agents are the institutions or entities that channel the funds provided by financing sources and use those funds to pay for, or purchase activities. The selection of agents plays a key role in defining the interaction between external financing sources and the Government in each respective country. The agencies are indispensable in achieving efficiency and accountability in the management of development funds. The purpose of the study was to explore the influence of Financial Management Agencies (FMAs) on the success levels in the implementation of Global Fund projects. The study aimed at establishing the influence of FMAs in the implementation of Global Fund projects in Kibera slum. Specifically the study looked at the role of financial management agents in the implementation of Global Fund projects in Kibera slum, the challenges faced and the coping strategies employed in Global Fund project implementation. The study adopted a census design and use qualitative techniques to determine the relationship between the independent and dependent variables. The relevance of the qualitative approach is that it explores insights that could be relied upon to expand the subject matter and enable the application of quantitative studies. Data was collected through questionnaires in order to obtain comprehensive information from the interviewees. The sample size of the study included 32 heads of projects in KPMG who are directly involved in the implementation of Global Fund. The study found that procurement policies were available in FMAs and this enhanced accountability and ICT adoption. Internal processes affected performance and the major areas of capacity building in FMAs were staff training and employee motivation, and this was carried out through fair job promotion, professionalism and trainings. Capacity assessment was noted in all the departments with major areas such as human resource, finance, projects and system assessment. Based on this study, it was concluded that procurement regulations and guidelines are important aspects in line with adherence to the prudent financial practices and positive performance of the FMAs. These ensured uniformity in financial reporting and transparent procurement procedures. Compliance with the guidelines is enhanced through monitoring visits and document verifications. Strict internal controls should be encouraged since they improve the efficiency and effectiveness of the FMAs staff in their practices. It was also concluded that human and financial resources are considered crucial to the performance of FMAs. Since procurement regulations and guidelines affects performance of FMAs, donors should therefore impose considerable guidelines on respective organizations. This can be facilitated by having uniform regulation through a donor fund regulatory body that will enhance consistency and uniformity in the FMAs supplies. Capacity building should also be extended to the project beneficiaries in addition to internal personnel as this will create all round revolving funds. FMAs' management should strive to improve their management practices by employing qualified managers who are committed to the achievement of both the donor and the FMAs objectives. There should be regular audit of the FMA processes as this can lead to better management of finance and human resources.