Effects of Corruption Awareness, Government Policies and Financial Literacy on Performance of Counties in Kenya

Abstract

County Governments have been facing a lot of challenges and accusation on loss of funds. Low awareness by communities and fund managers of their roles and responsibilities in the management of the funds has contributed to poor performance, and total failure in some cases. No mechanisms exist to deal with projects such as roads, water systems, agricultural projects and schools that may cut across constituencies entailing shared benefits. No clear mechanisms exist to avert duplication of functions and committees to vet how funds from the county government have been used. The study sought to establish the determinants of performance of Counties in Kenya. Specifically, the study looked at corruption, government regulations and financial literacy and their influence on performance of counties. The study adopted a descriptive design and the population comprised of three counties where 190 respondents were targeted. Census was used and the study gathered both primary and secondary data. The collected data was analyzed and the findings presented using tables and figures. The study established that corruption, government regulations and financial literacy all have significant effect on performance of counties. The study concludes that corruption, government regulations and financial literacy are key determinants of performance of counties. The study recommends that policy makers and agencies like the Ethics and Anti-Corruption Commission (EACC) should enhance its active role in fighting corruption among counties in Kenya. The judicial system in Kenya has an important role in fighting corruption as far as hearing and determination of the reported cases of corruption is concerned. All public servants including employees working in County governments should be sponsored to attend refresher sources in personal financial management so as to enhance their financial literacy.