The Factors Affecting the Implementation of International Public Sector Accounting Standards in Kenya
Abstract
Reforms in Government’s financial management systems and processes are becoming
critical in response to increasing demands for greater transparency and accountability in
the management of the public’s finances. In Kenya as is widely acknowledged, there are
fundamental problems that currently inhibit the efficiency and effectiveness of the
GOK’s finance and accounting functions. This is due to poor performance of basic
financial functions, poor supervision, inadequate financial information and decision
support, poor staff motivation and attitudes to accounting and accountability. These
inherent problems have suggested as contributing to the slow progress by the
Government of Kenya in implementing its Public sector reforms in Particular the IPSAS
compared to other Countries of the World. The study sought to established factors
affecting the implementation of IPSAS in Kenya hence the level of implementation. This
study therefore was a descriptive study. It was designed to describe the extent of IPSAS
implementation at the Ministry Finance. The target population was 38 Heads of
accounting units and their deputies in 14 key ministries headquarters’. The sampling
procedure used the stratified sampling method. This study gathered both primary and
secondary data. Primary data was collected at the source by the researcher. Secondary
data was data previously collected by other researchers which was also used in this study.
This study used descriptive statistics to describe a phenomena or an object. Infereretial
statistics regression and correlations were done to establish the extent to which the factors
affected implementation of international public sector accounting standards in Kenya.
From the findings, the study established that failure to tackle specific accounting issues,
lack of adoption of information technology, lack of international financial support
significantly affected implementation of international public sector accounting standards
in the public sector in Kenya. The study concluded there are fundamental problems that
currently inhibit the efficiency and effectiveness of the IPSAS implementation. Low level
of technology adoption, poor NPFM reforms and adoption of IFMIS by the Kenya
Government, lack of political and weak legal framework, failure by parliament to enact
new Financial management Act 2004 to recognize IPSAS, lack of trained and competent
staff on the adoption of IPSAS systems of financial reporting were the factors that
affected implementation on IPSAS in the government sectors. The study recommends
that a legal framework to be crafted in order to prescribe IPSAS, all stakeholders and
partners in the government embrace IPSAS reporting system in order to enhance financial
management in the public sector, goverment upgrade Information technology and
enhance adoption of ICT in order to cope with the financial data requirements of the
IPSAS standards.
Citation
MBA Thesis 2012Sponsorhip
University of NairobiPublisher
School of Business, University of Nairobi
Description
Master Thesis