Effects of Financial Management Practices On Financial Performance for County Governments in Kenya - A Case Study of Mombasa County

: There has been a public outcry on the management of the accrued fund from projects leading to halting while others are operating normally (Ministry of planning report, 2009) and National Anti-corruption campaign steering committee report (2010). Some projects halt due to various concerns such as failure of proper resource allocation, poor budgeting and failure to meet financial obligations during operation. Many organizations and researchers have done various studies on CDF but scanty information were available on the causes of failure of the long-term projects to meet the intended objectives in various constituencies. Therefore, all aspects of financial management in public sector organizations should operated in an environment where there was confidence in the veracity of the financial information being used. Hence, the public sector required robust systems of financial controls supported by effective audit and assurance arrangements. The general objective of this study was to examine the effects of financial management practices on financial performance of county governments in Kenya. The specific objectives was to examine the effects of financial planning on financial performance of Mombasa county government; to determine the effects of sourcing of funds on financial performance of Mombasa county government; to evaluate the effect of allocation of funds on financial performance of Mombasa county government and to examine the effects of control of funds on financial performance of Mombasa county government.  The researcher used a conceptual framework to show a relationship between dependent variable and independent variables. To strengthen the conceptual framework, the researcher used theories such as residual equity theory, contingency theory and pecking order theory. The researcher used a descriptive research design. The target population was two hundred and sample size will be sixty. A pilot study was carried out to refine the instrument. The quality and consistency of the survey was further assessed using Cronbach's alpha. Data analysis was performed on a computer using Statistical Package for Social Science (SPSS Version 23) for Windows. Analysis was done using frequency counts, percentages, means and standard deviation, regression, correlation and the information generated was presented in form of graphs, charts and tables. Data collection was done using questionnaires method. Data analysis and interpretation was based on descriptive statistics as well as inferential statistics mainly regression analysis and Pearson correlation which was employed during analysis of data. The relationship between the independent variables (financial planning, sourcing of funding, allocation of funds, and control of funds) and financial performance was tested using regression analysis and then presented in tables. The results reveal that, financial planning, sourcing of funding, allocation of funds and control of funds have positive significant correlation on performance. The study concluded that Mombasa County has established proper financial planning and allocation funds mechanisms that have enhanced performance. The study recommends that county government should look for other sources of revenue to support their development needs in the county. The study also recommends that county government financial planning revenue should be made on a priority basis and be able to go through public participation.