Integrated Financial Management Information System and financial accountability among government agencies in Kenya: the moderating role of IPSAS accounting standards
Date
2025
Authors
Maina, E. W.
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Journal ISSN
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Publisher
Strathmore University
Abstract
Corporate accounting scandals and financial scandals in the public sector have become more prevalent in Kenya in recent years, according to reports from governance institutions like the Office of the Auditor General, Controller of Budgets, and Ethics and Anticorruption Commission. IFMIS was expected to reduce such incidences by enhancing financial accountability. The main aim of this research proposal is to assess the effect of IFMIS on financial accountability among government agencies in Kenya. The specific objectives of the study were to; analyse the effect of IFMIS electronic procurement on financial accountability, to establish the effect of IFMIS budgeting on financial accountability to assess the effect of IFMIS financial reporting on financial accountability, and to assess the moderating effect of IPSAS on financial accountability in the public sector. The research adopted the agency theory, institutional theory, and the technology acceptance model. A descriptive research design was used in this research. The study population was the 401 government agencies in Kenya. The unit of observation was the head of internal audit in each government agency. The study utilized primary data collected using a questionnaire. Descriptive and inferential statistics were used to analyze the acquired data after it has been converted into a quantitative format. Mean and standard deviation will be included in the descriptive statistics, while the Pearson correlation and regression analysis was included in the inferential statistics. This study examined the relationship between IFMIS procurement, IFMIS budgeting, IFMIS financial reporting, IPSAS accounting standards, and financial accountability in Kenya's public sector. Further, the IPSAS accounting Standards were introduced as a moderating variable in the study. The study findings revealed significant positive correlations between the three independent variables and financial accountability. The regression analysis established a significant positive causal relationship between IFMIS electronic procurement and financial accountability, a significant positive relationship between IFMIS budgeting and financial accountability, and a significant positive relationship between IFMIS financial reporting and financial accountability. Further, IPSAS accounting standards were found to enhance the relationship between the IFMIS elements and financial accountability. This was indicated by an increase in the explanatory power of the model after accounting for the moderation effect, showing that the IPSAS accounting standards enhance this relationship. These results suggest that effective adoption and implementation of these systems significantly improve transparency, accountability, and overall public financial management. The study concluded that IFMIS and IPSAS accounting standards play critical roles in enhancing financial accountability within Kenya's public sector. It recommended capacity-building initiatives to improve user proficiency, regular system audits, and stricter adherence to IPSAS standards. Additionally, harmonizing regulatory frameworks and fostering transparency through open data initiatives were suggested to enhance system effectiveness. For future research, the study recommended investigating other financial management tools, analyzing contextual factors influencing system effectiveness, and employing mixed methods to capture diverse perspectives on financial accountability.
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Citation
Maina, E. W. (2025). Integrated Financial Management Information System and financial accountability among government agencies in Kenya: The moderating role of IPSAS accounting standards [Strathmore University]. http://hdl.handle.net/11071/15956