Factors influencing utilization of Monitoring and evaluation systems in Commercial Banks in Kenya

Abstract

The purpose of the study was to establish factors influencing utilization of monitoring and evaluation systems in commercial banks in Kenya. The study specifically sought to determine the extent to which level of staff training, level of management commitment, level of resource allocation and use of monitoring and evaluation findings influence utilization of monitoring and evaluation systems in commercial banks in Kenya. This study adopted a descriptive survey design. The population of study was M & E managers in all the 43 Commercial Banks in Kenya. Since the population was small, a census study was adopted whereby all the 43 M&E managers from the 43 commercial banks formed the sample size for the study. The study collected primary data using questionnaire and interview schedule. A pilot test was conducted to test for validity and reliability. The study used drop and pick later method to collect the data. Both descriptive and inferential statistics were adopted for analysis. The quantitative data was analyzed using descriptive statistics which included frequency distribution tables, mean and standard deviation while the qualitative data was analyzed in prose form. The regression model was adopted to establish the relationship between variables. Data was presented using frequency distribution tables. The study found out that staff training factors, management commitment factors, resource allocation factors and use of M&E findings influenced utilization of monitoring and evaluation system in commercial banks in Kenya. The study concludes that training instils needed skills, knowledge to adequately set up and manage the monitoring and evaluation function effectively and to use the system correctly. Management commitment is critical for enhancing leadership skills, sharing an organizational goal, and providing resources necessary for the utilization of monitoring and evaluation systems in commercial banks. The study also concluded that resource allocation factors influenced utilization of monitoring and evaluation system by enhancing allocation of funding and trained staff. The study recommends for increased training of Programmes officers and managers in order to equip them with the needed skills and knowledge to adequately set up and manage the Monitoring and Evaluation function effectively in the banks and to use the system correctly. Commercial banks should use incentives to encourage project managers, monitoring and evaluation officers to perceive the usefulness of Monitoring and evaluation. There is also need for increased commitment by the management in overseeing the monitoring and evaluation exercise in the bank.