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Relationship Between Financial Planning Practices and Performance of Constituency Development Funded Projects n Ndhiwa Constituency, Homa Bay County, Kenya

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dc.contributor.author OLUOCH, Kennedy Okoth
dc.date.accessioned 2021-05-26T13:09:18Z
dc.date.available 2021-05-26T13:09:18Z
dc.date.issued 2016
dc.identifier.uri https://repository.maseno.ac.ke/handle/123456789/3871
dc.description.abstract The Constituency Development Fund (COF) was implemented in 2003 to address challenges of unbalanced development and poverty at the grassroots level in Kenya. However, studies indicat~ that up to 40% of projects funded by the Fund in Kenya have failed, with up to 60% failure in Ndhiwa Constituency which indicates poor performance. Whilst financial planning practices have previously been shown to influence performance, the relationship between cash budgeting, cash tlow projection and capital budgeting practices and the performance of Ndhiwa COF funded projects is unknown. The study was anchored on Traditional development theory and Agency theory. The purpose of this study was to establish the relationship between financial planning practices and performance of Ndhiwa COF funded projects. Specifically the study sought to; establish the role of cash budgeting in performance of the Ndhiwa COF-funded projects, determine the relationship between cash flow projection and performance of the Ndhiwa COF-funded projects, and to evaluate the influence of capital budgeting on performance of Ndhiwa COF-funded projects. The study adopted correlational research design. Out of a total population of 455 Project Management Committee (PMC) members, a sample of 213 PMC I members were selected using simple random sampling technique. Primary data were collected using questionnaires. Through test-retest method, a reliability coefficient of 0.8 and content validity index (CYI) of 0.774 were determined. The statistics were above the threshold of 0.7 suggesting that the questionnaire was reliable and valid. Multiple regression was used to analyse the data. The study revealed that a unit increase in cash budgeting leads to a 0.794 significant increase in performance of COF funded projects (p = 0.047). A unit Cash flow projection (p = 0.051) and capital budgeting (p = 0.061) were found to have insigni ficant positive relationship with performance of COF funded projects. The study concluded that cash budgeting was a significant determinant of performance of COF funded projects among the financial planning practices. The study recommends that cash budgeting be applied more in COF funded projects. This study's findings may contribute to the existing literature on COF funded projects and form a basis for formulation of policies on management of community projects. en_US
dc.publisher Maseno University en_US
dc.title Relationship Between Financial Planning Practices and Performance of Constituency Development Funded Projects n Ndhiwa Constituency, Homa Bay County, Kenya en_US
dc.type Article en_US


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