CORPORATE GOVERNANCE PRACTICES ON IMPLEMENTATION OF THE NATIONAL GOVERNMENT-CONSTITUENCY DEVELOPMENT FUNDED PROJECTS IN HOMABAY COUNTY, KENYA

Abstract

Across the globe, corporate governance is of essence more especially in the competitive business environment. In the public sector there is increasing concern by citizens on how public financial resources are managed by different government agencies. Reports from the Auditor General, the Controller of Budget, and other government agencies have revealed worrying trends in the management of public financial resources. Specifically, these reports highlight inadequate budgetary controls, lack of stakeholders involvement, absence of accountability, and a lack of transparency in financial reporting, all of which compromise accountability and hinder effective public resource management.The National Government Constituency Development Fund is increasingly at the center of this nexus which raises interesting questions on what is role of the corporate governance practices and implementation of the National Government Constituency Funded projects? The general objective of this study was to determine the influence of corporate governance practices on the implementation of National Government Constituency Development funded projects in Homabay County. Specific objectives of the study were: to examine the influence of stakeholders’ participation, professionalism, transparency and accountability on the implementation of NG-CDF projects in Homabay County, Kenya. The study was guided by the stakeholder theory as the main theory supported by resource – based theory, agency theory and stewardship theory. To achieve the objectives of the study, the researcher employed a descriptive survey research design. The study targeted a population of 1680 chairmen of PMCs for education projects funded by the NG-CDF in Homabay County. The study utilized both stratified and simple random techniques sample. Yamane’s Formula was used to get sample size of 323. This study adopted the use of both close and open ended questionnaires to collect data. A pilot was done in Migori County. validity and reliability were tested using content validity and Cronbach Alpha test respectively. The data analysis was done using both descriptive statistics as; frequency, percentage, mean and standard deviation and inferential statistics using Pearson Correlation, simple and multiple regression analysis. Content analysis was used to analyze data collected from open-ended questions. The study established that there was an agreement that stakeholder participation, professionalism, transparency and accountability affected implementation of NG-CDF projects. The study concluded that stakeholder participation, professionalism, accountability and transparency had a significant and positive effect on the implementation of the National Government-Constituency Development funded projects in Homabay County. The study recommended that the Fund managers in Homabay County ought to actively engage the various stakeholders including the community in the implementation of NG-CDF. The NG-CDF committee members are to exercise professionalism in the exercise of their duties. NG-CDF committee members are to be held accountability for the utilization of NG-CDF funds. The NG-CDF officials are to enhance the level of transparency in the utilization of the NG-CDF development funds.