Abstract
Proper management of finances in private primary schools is very imperative to their operations. There are, however, serious financial challenges in these private schools in Kenya as characterized by unprecedented high fees charged on students. The objective of this study was to assess the role of financial control in the growth of private primary schools in Kenya. The study was guided by the Cash Management Theory that gives emphasis to reasonable ways to deal with organizational finance management and efficient utilization as well as the Endogenous Growth Theory which stipulates that, in the long-run growth rate depends on a stable business environment. The study employed both quantitative and qualitative study design, which targeted 7,418 private primary schools in Kenya. Accessible population constituted of 3,431 heads of schools in four regions of Kenya namely: Nairobi, Central Kenya, Northeastern, and the Coastal regions. A random sampling method was used to draw a sample of 320 respondents who were either the principals’/Head teachers or deputy principal of the schools. A structured questionnaire was used to collect data. Structural Equation modeling using Analysis of Moment Structures was used to analyze the data. The fitness of the hypothesized structural and measurement models was tested using the Normed Fit Index and the Root Mean Squared Error. The overall path coefficients obtained were positive and significant at a 0.05 level of significance. The study established that financial control positively and significantly influenced the growth of private primary schools. The study recommended that private primary schools should have effective budget management mechanisms and strong financial controls.
Highlights
Good financial governance can improve the performance of institutions and helps in assuring its long-term survival in the face of stiff competition (Heyneman and Stern, 2016)
Parents with children in these institutions pay tuition fees that average one thousand Kenya shillings monthly (Piper and Mugenda, 2015; Piper et al, 2017). Admission to these low-cost private schools is granted at the discretion of the head teacher and only a few schools conduct interviews for new students as part of the selection process. and this study examined the influence of financial control on the growth of private primary schools in Kenya
Asked if recommendations of the internal audit unit are implemented in the school 13.8% strongly disagreed, 26.3% disagreed 9.4% were neutral, 19 % agreed while 31.6%
Summary
Good financial governance can improve the performance of institutions and helps in assuring its long-term survival in the face of stiff competition (Heyneman and Stern, 2016). N. (2018) most private primary schools are faced with inadequate facilities like libraries and inadequate instructional materials, not forgetting issues to do with debt management and lack of a proper succession planning. These factors tend to have a negative effect on the quality of results produced, affecting overall performance and the growth of the school. The general objective of this study was to assess the role of financial control in the growth of private primary schools in Kenya.
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