An investigation into the challenges of budgeting in the Kenya Public Sector: a case of Kenyan Government Ministries
The main objective of this study was to investigate the challenges of budgeting in the Kenya public sector. This study adopted a descriptive research design and used a semistructured questionnaire to collect data. Content analysis was used to analyze the qualitative information while descriptive statistics was used to analyze quantitative data. Tables and charts were used to present the data. The study findings reveals that majority of the departments participate in preparation of recurrent budgets, development budgets, MTEF budgets, incremental budgets, master budgets and performance-based budgeting. The study also concludes that when processes are relatively routine and repetitive; budgets could be used effectively to achieve organizational coordination and that budgeting and variance analysis can be positive tools, if the accounting information/communication process is functioning appropriately. The study further deduces that majority of the Ministries experience challenges of budget planning and budget control, communication, poor or lack of modem technology, budget inflexibility and competition among the budgeted items for scarce resources. The study recommends that budgets should be used effectively to achieve organizational coordination and that budgeting and variance analysis can be positive tools, if the accounting information/communication process is functioning appropriately. The study further recommends that the Ministries should employ highly qualified personnel to enhance proper budget planning and budget control. The Ministries should focus on the funding process, the constraints faced, the legal frameworks and competition among the endless expenditure against the limited resources (revenue). The study further recommends that well advanced and current technology should be installed in all the Ministries in Kenya to enhance communication. Proper frameworks need to be implemented to ensure that budget inflexibility does not pose a challenge in the budgeting process. The Ministries need to be politically independent to avoid political interference.