Abstract:
In the recent world, information systems have changed the traditional way of business
management. Modern organizations have been adopting new financial management information
systems to be in-line with the new technology. Introduction of IFMIS in the organization acts as
a reform towards the governance, financial information and user accountability in the public
sector. In the study on the effect of the implementation of IFMIS on public expenditure
management by Kenyan government, the specific objectives were; to establish the effect of
IFMIS procurement module on public expenditure management, to assess the effect of the IFMIS
budgeting module on public expenditure management and to determine the effect of IFMIS
accounting module on public expenditure management. The study sought to show how
implementation of integrated system could assist management to reduce misuse of public
resources through improved public expenditure management. The study adopted descriptive
survey design and a sample of 103 respondents from a combined population of 140 drawn from
five ministries in the National Governments and analyzed using Multiple Regression model,
Correlation coefficient and SPSS software. The analyzed data was used to make conclusions on
the study findings. The study presented strong positive and significant relationship between
IFMIS applications and the public expenditure management. This shows that IFMIS has greatly
improved the management of public expenditure though the study results indicate that there is
need for further integration of the system modules to enhance proper monitoring controls of
public expenditure. The study suggested that adequate skills to be given to the system
implementers.