Charity Wanjuki Kamwana
Jomo Kenyatta University Of Agriculture And Technology
Dr.Willy Muturi
Jomo Kenyatta University Of Agriculture And Technology

CITATION: Kamwana, W. C. & Muturi, W. (2014). Effects Of Financial Management On Performance Of World Bank Funded Projects In Kenya: A Case Of Kplc Projects. European Journal of Business Management, 2 (1), 370-384.

ABSTRACT

Organizations are required to use funds wisely for the purpose intended and improve the living standards of the populations meant to benefit. Often, uses of funds are diverted to serve other interest of the organization managers outside the scope and work plans of these projects. This has resulted in surprise audits where misuses of funds are suspected by financiers and in the extreme cases bank accounts have been frozen to minimize the extent. Good financial management practices demand that obvious key management concepts and principles such as sustainability, accountability and transparency which are necessary for institutionalized formal procedures are put in place-administrative efficiency. In Kenya, government agencies have financial sustainability and replicability challenges in their projects. Project performance has become a buzzword within the development circles. The general objective of the research was to determine the effects of financial management on performance of world bank funded projects in Kenya: a case study of KPLC projects. The study targeted 500 employees of Kenya Power in Nairobi.   Questionaires were used to collect data for this study. Statistical package for social science was used to analyse data. The findings were presented inform of tables and charts. The four independent variables that were studied, explain 89% of the project performance practices and project performance as represented by the R2. This therefore means that other factors not studied in this research contribute 11% of the project performance giving room for further research to investigate the other factors (11%) that affect project performance implementation. The study found that majority of the respondents agreed that Financial planning, financial monitoring, financial evaluation and financial controls contribute to project performance. The study recommends that Policy and practice for project performance should be carefully evaluated and the results of that evaluation fed back into improved approaches. It is important that the evaluation considers the full range of costs and benefits.

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