| dc.description.abstract | The Medium Term Expenditure Framework (MTEF) was introduced into Kenya in 1998 and it was first implemented in the budget in the financial year 2001/2002 after the failure of the Forward Budget Review Program, the Budget Rationalization Program and the Public Investments Program , The main aims of the Program were to increase fiscal discipline, Political accountability and public participation in financial matters and improve efficiency of government operations through the introduction of Budget Ceilings, Sector Working Groups and frequent Expenditure Reviews (PER, 2010). This research sought to investigate the impact of MTEF on operational efficiency of Government ministries, so as to inform the Government, development partners and the public at large on the benefits and short comings of the framework. The research design used was a census survey of all Government Ministries in Kenya, the data collected was secondary data and analysis done using regression analysis of Operational efficiency to the extent of compliance to MTEF ceilings. Operational efficiency is measured as the ratio of the composite score (given by performance contracting) to expenditure of the ministry as a percentage of total expenditure by all ministries. The research found that adherence to MTEF ceilings has a negative impact on the performance of Government Ministries in Kenya. The study was limited by the poor availability of information and inconsistency of the financial information gathered as compared to all other publications of the same, as well as Ministry re-organizations. It is recommend that Links between Budgeting and Planning be strengthened, and IFMIS be rolled out to operational areas to improve efficiency and information consistency, as well as the setting up of efficient reward and sanction systems to encourage prudent fiscal responsibility. For researchers intending to do further studies on this Topic, insight should be sought into the compliance of resource division amongst sectors to the long term Vision of the Country, The cause of inconsistency in public financial data and the measurement of compliance to ceilings to the performance in project implementation of Government Ministries Departments and Agencies. | en |
