A Study of Factors Influencing the Absorption of Regional Development Funds in Kenya

Abstract

When Kenya’s new constitution was promulgated in August 2010, citizens’ prospects for the future of the country were upbeat. It was largely anticipated that the devolved system of government enshrined in the constitution would lead to a future of prosperity and good governance. Fifteen years on, the benefits of devolution are yet to be experienced fully in the country. This paper sought to investigate the factors influencing the absorption of development funds at the county level. The research examined the effect of county government structures, county government systems, and employee characteristics on the level of absorption of development funds. The target population comprised of the Chief Officers of the 47 Counties’ Ministries of Finance and Planning. A census approach was utilized - thereby resulting in a sample of 47. The study conducted exploratory factor analysis to extract latent factors of each independent variable, after which a multiple linear regression analysis was undertaken. The results of data analysis indicated that all independent variables had a positive and significant relationship with absorption of county development funds. Further, the overall fitted model was statistically significant. Based on these findings, the study made a number of recommendations to enhance absorption of county development funds in Kenya.