Budgetary Controls and Financial Performance of County Governments in Kenya: A Case of Kericho County, Kenya

The primary objective of this study was to examine the relationship between Budgetary Controls and the Financial Performance of County Governments in Kenya, specifically Kericho County. The main objective of the study was to examine the effect of budget planning on the financial performance of County Governments in Kenya, A Case of Kericho County. The study of their relationship is important since it will enable decision-makers to understand the basis of their governance decisions. Proactive measures are required to preserve the county's revenue-generating activities, make new ones, and strengthen the county's negotiating position in the national economy. To meet the broad objective, the study employed both Primary and Secondary data from Kericho County. Secondary data were drawn from budget review outlook papers for the financial years 2020/2021, 2021/2022, 2022/2023, and 2023/2024, whereas Primary data were drawn from administering questionnaires. The study employed a descriptive survey research design. The target population consisted of 87 employees in the Finance and Economic Planning department of Kericho County. A census approach was employed since the population is too small for sampling. The study found that budget planning practices have a positive and significant effect on the financial performance of county governments in Kenya, specifically in Kericho County (β = 0.418, P-value = 0.000). The study recommended that the county government of Kericho should enhance the adoption of budget planning practices to improve its financial performance.