Influence Of Financial Management On Peformance Of Community Water Supply Projects In Kieni East District, Nyeri County, Kenya

Abstract

This study was carried out to determine the influence of financial management on performance of community water supply projects in Kieni East District, Nyeri County. The main objective of the study was to investigate financial management factors that influence performance of community managed water supply projects in Kieni East District, Nyeri County. Specific objectives included to establish the extent to which budgeting for operation and maintenance of water systems influences the performance of community water supply projects, the extent to which water tariffs contributes to the performance of community water supply projects and to assess financial administration and its influence on the performance of community water supply projects. This study will assist managers in government, private sector and local communities in the formulation of strategies aimed at promotion of good governance through implementation of functional water supply projects. The analysis will assist the Kieni East District Water Office to know whether the financial management strategies being used are working. The literature review intended to identify what other researchers have done in the area of financial management on performance of community water supply projects. Data was collected through questionnaires. The common type of water project was mainly gravity fed water projects. The main problems with the water projects were broken pipelines, damaged water intakes and siltation. Members of the community contribute towards the budget through cash, labour, and voluntary contributions. If there are adequate funds for operations and maintenance of community water supply projects then the performances is expected to be good. The main source of funds for carrying major repairs, and system expansion or augmentation was from water projects this clearly shows that water tariffs charged can influence the performance of community water supply projects. Records of funds collected were kept in various books such as members registers, ledger, minute and work attendance register books. The financial management skills of the water management committee were established to be of acceptable standards. Public meetings were held mainly twice a year; notice boards, reports and annual general meetings were used to inform community members about the income accrued from the water services and project expenditures. In conclusion it’s important for community financial monitoring to be in place as it influences the performance of water supply projects.