The Challenges of Cash Budget Implementation Case of Commercial Banks in Kenya

Abstract

The study investigated the challenges of budgeting process in the banking industry in Kenya. To determine if budgets are fully implemented in the banking industry in Kenya and to give recommendations based on the finding of the study. This study was descriptive in nature and the researcher used survey method. The population of this study consisted of 42 Commercial Banks in Kenya that have been inspected, assessed and classified as commercial banks by the Central Bank of Kenya and operate in accordance with chapter 488 Banking Act of Kenya. The sample was picked from the current list of commercial Banks from CBK. Thirty Banks based in Nairobi were be selected from the list. Thereafter content analysis was used to analyse the respondents’ views about the factors affecting budgeting process. The data was then coded to enable the responses to be grouped in to categories. Finally descriptive statistics was used mainly to summarise the data. This included percentages and frequencies.