Factors affecting prudent management of constituency development funds in Kenya the case of Likoni Constituency
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The constituency development Fund (CDF) was established through an act of parliament in 2003 as a public funded kitty that targeted socio-economic development projects at the community level. The CDF positioned constituencies not only as units of political representation but also as a key strategy for effectively financing of development priorities across the country. However, the fund like any other integrated participatory program experienced challenges that have, at times threatened to reverse its gains. The main purpose of the study was to assess the factors affecting prudent management of CDF in Kenya: a case of Likoni Constituency. The literature review presented an insight and background into various authors on the aspects of prudent management strategies and policies in public fund management around the world. It therefore raised the need to come up with the most effective prudent management strategies to promote socio-economic growth and development for the benefit of the society at large. The integrated financial management system being implemented, but has not yet reached full coverage and functionality. The Internal Control system, including commitment control in place has not been very effective. The new Integrated Financial Management Information System is expected to strengthen the commitment control once it is completely rolled out and implemented, but that has not happen. The study therefore hoped to benefit the following; firstly the government especially the Ministry of Finance would use the study findings to improve policies formulation regarding Constituency Development Fund Management. Secondly, the Constituency Development Fund Committees would be made aware of the challenges in CDF management and the appropriate knowledge on the management of constituency development fund. Lastly the study intends to provide the background information to scholars who would like to carry out further research in related area. The researcher used descriptive research design when carrying out this study due to its reliability in obtaining desired information from uniquely qualified participants. The study targeted 120 management committees (CDFC) and implementers of projects (PMCs) across the entire constituency. These included, Constituency Development fund Committee members, Constituency Development Fund Account Manager, CDF Projects Coordinator, location representatives and Projects Management Committees. A sample of 42 respondents was drawn and considered for the study. Primary data was collected through a questionnaire for the purpose of collecting accurate data and the secondary data was collected from constituency development fund documents, CDF Acts and website. The research findings were qualitatively and quantitatively analyzed and presented in the frequency tables. The study found out that low technical in-put due to lack of expertise in projects management and implementation, the consisting and emerging community interests coupled by government led CDF legal legislation policies has led to poor projects formulation and implementation strategies. The study found out that politics still has a role in the management, formulation and implementation of CDF initiated projects. The study therefore recommended that there should be Staff Training program to effectively implement the CDF projects, proper dissemination of project information, community involvement in the management and evaluation of the project activities, development of elaborate strategic plans to enhance the prudent financial management of CDF funds.