Effect Of Integrated Financial Management Information System On Public Procurement Implementation In County Government Of Kajiado, Kenya

Abstract

The roll out of the Integrated Financial Management System (IFMIS) in all government institutions was aimed at improving the prudent management of public funds in Kenya. All Government entities in the National and County government levels are required to use the IFMIS in all transactions. Challenges in the use of the system are still evident in many government institutions despite the system having been in use for several years. Reports of leakages of public funds through corrupt practices are indications that the IFMIS has not fully achieved its intended objective of securing public funds. The National Treasury has also admitted to the fact that the IFMIS system has not been fully linked with public procurement. The purpose of this study was to examine the effect of Integrated Financial Management Information system on implementation of public procurement in the County Governments in Kenya. The specific objectives are: to establish the effect of IFMIS components (IFMIS reengineering, procure-topay and plan-to-budget) on public procurement implementation in County Government of Kajiado. The research used descriptive research design. The target population comprised the 696 employees based at the county headquarters in Kajiado Town. A sample of 140 respondents was drawn from the population using stratified random sampling. The collection of research data was undertaken using research questionnaires. In analyzing the data, the researcher used SPSS version 21 to calculate descriptive statistics and inferential statistics. The results of the analysis are presented in form of frequency tables, bar charts and pie charts. The findings show that the three factors IFMIS reengineering, procure-to-pay and plan-to-budget affect the implementation of public procurement in County Governments. The regression coefficient for IFMIS reengineering was 1.348, the coefficient for procure-to-pay was -1.171 and the coefficient for plan-to-budget was 0.014. IFMIS reengineering and plan-to-budget have positive relationships with public procurement implementation and an increase in either of the two factors will result in a positive increase in public procurement implementation. The procure-to-pay is negatively related to public procurement implementation and when it increases, public procurement implementation decreases. IFMIS adoption and use in County Governments has been made possible because of management commitment towards IFMIS, adequate change management in the county governments and a supportive legal framework. IFMIS has supported and improved public procurement in County Governments by ensuring that suppliers and paid on time, effective and accurate budgeting is undertaken and that budgetary controls are effectively enforced.