Effect of Internal Controls on Performance of Devolved Governments in Kenya

Abstract

Internal controls are essential determinants of financial distress in any devolved government worldwide. The devolved governments in Kenya recorded a dwindle in their own source return from 11.7 percent in 2013/14 to 8.8 percent in 2016/17. This research sought to establish the effect of internal controls on the performance of devolved governments in Kenya by adopting a correlational research study. The target population was 423 respondents from the 47 devolved governments in Kenya. Stratified random sampling was used where the sample size was 381 respondents after 38 respondents were excluded and used in the pilot study with a response rate of 80.7%. Primary data were gathered by the use of a structured questionnaire. Data analysis involved descriptive and inferential statistics in determining the trend of the study variables and prediction of variables, respectively. Findings of the study were presented using tables and figures, while regression analysis disclosed that the calculated p values of internal controls (p=0.002) were significant (p˂0.05). Therefore, the scholar failed to reject the null hypothesis connoting that internal controls significantly had an effect on the performance of the devolved government in Kenya. The study commends that devolved governments should step up and ascertain that internal controls are in place to improve service delivery to the people on the ground.