The Relationship Between Participatory Budgeting and Performance of Local Authorities in Kenya (a Case Study of the City Council of Nairobi)

Abstract

Much of the previous research into the relationship between participatory budgeting and organisation performance mechanism has concentrated generally on developed countries. Not much known local study has focused on relationship between participatory budgeting and organisation performance. This study therefore sought to fill the existing research gap by carrying out a survey study on the relationship between participatory budgeting and performance of local authorities in Kenya. This research was conducted through a survey study. The target population of this study was the sampled 44 respondents. This paper also utilized the firm‟s financial statements and other data used in various previous research projects. This study collected descriptive data also. The data received was analyzed by multiple regression analysis. From the findings, the study established, the direct path between budget participation (PART) and performance (PERF) modeled by Path A and described by hypothesis H1 is not fully supported by any of our CCN samples, p≥0.0538. Also the researcher found that, the indirect relationship between budget participation (PART) and performance (PERF) running through job relevant information (JRI) described by hypothesis H3 is fully supported by our full (combined) sample and Standardized coefficient sample, joint probability≤0.0489. That, the indirect relationship between budget participation (PART) and performance (PERF) running through job relevant information (JRI) described by hypothesis H3 is not supported by our unstandardized coefficient sample, joint probability=0.1009. This study therefore recommends that in order to avoid many impediments, CCN should make sure that its budgetary participatory strategies are sufficient to enable budget administration and management prudence and getting them advice promptly.