The influence of aid agencies in financial controls in Nairobi County
Financial control can directly contribute to poverty reduction in developing countries in a nwnber of ways. First, by addressing the causes of financial market failures such as information asymmetry and the high fixed cost of lending to small borrowers, financial control can improve the opportunities for the poor to access formal finance (Jalilian and Kirkpatrick.Cfhll ). Second, a sound financial system enables the poor to access financial services, particularly credit and insurance-risk services, thereby strengthening the productive assets of the poor, enhancing their productivity and increasing the potential for achieving sustainable livelihoods (World Bank, 2001; Jalilian and Kirkpatrick, 2001). This study was motivated by the need to establish the impact of the Aid agencies on the financial control in Nairobi County. The study adopted a descriptive research design. The pilot study was first done to ensure validity and reliability of the results and findings. The data was collected using questionnaires from the Aid agencies respondents in Nairobi County. The collected data was first checked for completeness and edited to increase the accuracy and produce reliable findings. It was then coded and analyzed using descriptive statistics such as mean and standard deviation. The study findings indicate that, Aid agencies influence the financial control in Nairobi County substantially. The Aid agencies improve the financial systems of the Nairobi County by providing social development funds, lending funds for development and offering loans for development to the investors. The Aid agencies should be involved in financial system so as to improve the economy, minimize the prevalence of fraud cases and ensure monetarypolicies are well implemented in the country. The findings of this study will form a basis for policy formulation on monitoring and evaluation of management of financial aids from aid agencies in Kenya. From the study findings, most of the Aid agencies are not involved in maintenance of the finance records. This study recommends that training and campaigns should be done by the Aid agencies to ensure that the staff are well trained on how to maintain and keep finance records updated.