Contribution of integrated financial management systems (IFMIS) on financial accountability within devolved governments: in Nairobi city county, Kenya

Abstract

Governments in developing countries are increasingly exploring methods and systems to modernize and improve public financial management. This study intended to determine the contributions of Integrated Financial Management Systems on financial accountability within devolved governments. The study was guided by the following objectives: - determine the opportunities availed by IFMIS in financial accountability within devolved governments, to assess the effectiveness of IFMIS on financial accountability within devolved governments and to determine the regulatory challenges facing IFMIS on financial accountability within devolved governments. Diffusion of Innovation Theory, Information Systems Success Theory and Resource Based View Theory theoretically informed the study. This study adopted descriptive research design. The intended target population for this study were 350 employees of the Nairobi city county government; namely, legal department, inspectorate department, monitoring and evaluation and finance department. The sample size of the study was 104 respondents. Two data collection tools were used, a semi-structured questionnaire and an interview guide. Quantitative and qualitative data analysis methods were used. Quantitative data were analyzed using descriptive and inferential statistics such as mean scores, standard deviation, frequencies, and percentages. A computer package (IBM SPSS Statistics 21) was used to aid in processing quantitative data. Data analysis results were presented in charts and tables. Qualitative data were analyzed using content analysis. The responses from interviews were categorized based on the themes and patterns cutting across different interviewees responses and reported through prose. The study noted majority of the respondents agreed that IFMIS had significantly assisted in ensuring transparent financial transactions at the county government. The study noted majority of the respondents strongly agreed that IFMIS had significantly assisted in ensuring efficiency and effectiveness within the county government. Finally it was noted by this study that IFMIS was facing some legal challenges which should promptly be addressed in order to improve financial accountability. This study recommends that the government should ensure that e-government timescales are tailored to the current realities and all the stakeholders must be motivated to a significant extent. Finally, government should undertake more programmes on awareness to form positive stance towards the government e-projects among the stakeholders where IFMIS lies.