Effect of Budget Allocation and Procurement Processes on Budget Utilization in the Public Sector in Kenya: A Case of The Judiciary

Abstract

Budget management has great implications for the realization of the objectives of the budgets in institutions. If the budget is not prepared with the greatest dedication and also genuineness it is not possible to understand the fantastic capacity of finances as tools for national progression. The budgeting and budgetary controls have attained high focus among institutions in the present day and thus offer high prospects which this research study examines. This study sought to establish the influence of budget allocation on budget utilization in public institutions within Kenya and to analyze the influence of procurement processes on budget utilization in public institutions within Kenya. The study was anchored on Resource Based Theory with a descriptive research design being adopted. The targeted population for the study was the Chief registrar, Court Registrars, Deputy Registrars, Directors and Deputy Directors in the Judiciary totaling to 40. The study used census approach where the entire population of 40 respondents was used in the study. Additionally, the data collection instruments comprised of both questionnaires and the interview guides. Additionally, qualitative analysis was done using content analysis and SPSS was used to analyze the quantitative data. The inferential statistics included the Pearson correlation and multiple linear regression model. Frequency, percentage tables, charts and graphs was used to present the data. Correlation results indicated that budget allocation was positively related to budget utilization (Pearson’s Correlation Coefficient of r = 0.798, p-value 0.0001). The results indicated that procurement process was positively related to budget utilization (Pearson’s Correlation Coefficient of r = 0.608, p-value 0.0001). The regression results indicated that budget allocation and procurement processes have a positive and significant relationship with budget utilization in the Judiciary. The study recommended for a classification that enables better links between policy priorities and funding programs. The study further recommended that the budget should provide unambiguous information on all aspects of Judiciary policy. Oversight should be enhanced for proper compliance to statutes and internal controls. Keywords: Budget Allocation, Procurement Processes, Budget Utilization, Public Institutions, Judiciary