DETERMINANTS AFFECTING THE IMPLEMENTATION OF THE INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM BY THE NAIROBI CITY COUNTY, KENYA

Abstract

The Kenya Government has implemented the Integrated Financial Management Information System (IFMIS) since the year 2005 as its sole accounting system. The expected benefits envisaged from its effective use include; proper governance, improve fiscal transparency, reduced political discretion, deterrent to corruption and fraud and accountability of public funds. However, for now over twelve years of implementation, this system has still not been able to fully provide the expected benefits especially in the county governments. The main purpose of this study was to assess the determinants affecting the implementation of the IFMIS in the county governments of Kenya. The study specifically focused in establishing the extent to which change management, technological infrastructure, human capital development and top management commitment affects implementation of the IFMIS in the county governments of Kenya with a special focus in Nairobi City County. This study used descriptive research design. The study was conducted in Nairobi City County where it targeted 48 Nairobi county government employees who use IFMIS. The target respondents comprised of county executive accountants, county executive procurement officers, county executive accounting officers, county assembly accountants, county assembly procurement officers and county assembly clerks. Complete enumeration was used where all the target respondents were observed. Data was collected using a self administred questionnaire was analyzed using SPSS and the findings presented in tables and graphs. The findings established that change management process, technological infrastructure and top management commitment had affected the IFMIS implementation process moderately whereas human capital development had affected the IFMIS implementation process greatly. The findings further established that general rating of level of change management carried out, technological infrastructure capacity, human capital development carried out in the county and top management commitment towards the implementation process was generally low. The findings further established that the general rating the level of implementation of IFMIS System in the county was generally low. Based on the findings of this study, the following recommendations were made. A comprehensive change management process should always be undertaken whenever a new innovation is adopted in any organization. Government and private institutions should ensure availability of the required up to date technological infrastructure to ensure smooth implementation of technological based innovations. Organizations should invest heavily in capacity building so as to ensure their employees are well equipped with the required skills in order to perform effectively. The top management should offer support and act as role models as this will motivate their employees to perform even better.