The Effect of Integrated Financial Management Information System on Performance of Employees in Commissions in Kenya

Abstract

Kenya Government had been experiencing mismanagement of public resources for many years, this weakness resulted in desperate need to have proper and sound system that would ensure that cases of embezzlement of funds are minimized. It is on this regard that the government decided on the gradual implementation of the Integrated Financial Management Information System (IFMIS) since the year 2005 as its only system for accountability. The Government’s decision for its adoption was after a team of experts had been sent to benchmark with the most successful countries in implementation of IFMIS. They had foreseen numerous advantages of the system ranging from its effectiveness, efficiency and its ability to track information to be used as audit trail that could deter fraud. Nonetheless, all these proved to be a pipe dream, because the expected benefits have been overshadowed by the challenges of the system. Even after investing huge sum of money in its implementation the country is still grappling with problem of inefficiencies in budgetary processes, expenditure control and corruption has run out of hand. This research project has tried to determine the effect of the system on the performance of employees in the state commissions. The researcher sought to find out by testing, transparency, expenditure and payment, budgetary control, efficiency monitoring and reporting post implementation of the IFMIS in the state commissions. The adoption of IFMIS, in Kenya was an impeccable achievement towards enhancing transparency, financial innovation and accountability in the procurement phenomena and the pillars of the Kenya Vision 2030. In spite insurmountable challenges during its implementation, there has been key milestone achievements during its institutionalisation in the State Commissions, as positively hypothesised by the study’s research objective underpinning the analytical models and the problem statement in question. In deed the study falsifies, the contradictions associated with IFMIS by empirically validating the positive effects in lieu of employee performance in state commissions in the republic of Kenya. This study distinctively utilized primary data, the research instrument being questionnaires which were administered effectively to the employees of the state commissions in Kenya. Descriptive technique, use of charts, tables was applied in analysing the data and Statististical inferences obtained using SPSS was used to get the figures for variables in the study. Multiregression analysis was used to determine the effects of IFMIS on the employee performance in the state commissions.