The Effect of Donor Funding on the Organizational Performance of Government Ministries in Kenya
Abstract
The study sought to find out the effect of donor funding on the performance of
government ministries in Kenya. It was interested in the analysis of this relationship
because the country receives a considerable amount of foreign aid yet the country has not
achieved the desired or expected results, the country still experiences considerable
poverty levels. Performance score based on government annual ranking was used to
determine the performance of the government ministries. One of the significant
management reforms in the public service in recent times aimed at addressing the
agency problem has been the introduction of performance contracts. Performance
Contracting is part of broader public sector reforms aimed at improving efficiency
and effectiveness in the management of the Public service. Part of the strategies of
improving this is providing enough finances to run the agencies programs and
donor funding has been very instrumental. However, little is known on how the donor
funds affect the performance of government Ministries. Thus, the objective of the study
was to establish the relationship between donor funding and performance of government
Ministries in Kenya. The descriptive study targeted a population of 42 government
ministries that existed during the coalition government. The study used secondary data
sources from the Treasury and Ministry of Devolution and Planning for 2008/2009 to
2012/13. Simple linear regression analysis was conducted. The findings show that, at
95% confidence level, there were significant negative linear association between donor
funding and performance. The study concludes that on average, there is a negative linear
relationship between donor funding, total debt (control variable) and performance score
based on annual government ranking.
Citation
School of Business,Publisher
University of Nairobi
Description
Thesis