FINANCIAL ACCOUNTABILITY PRACTICES AND THE SUSTAINABILITY OF COUNTY GOVERNMENTS IN KENYA

Abstract

Effective public financial management (PFM) is critical for good governance and sustainable development. In Kenya, county governments continue to face sustainability challenges due to persistent financial inefficiencies. This study examined the relationship between financial accountability and the sustainability of county governments. Using a positivist paradigm with an ex-post facto design, the study targeted 23 counties within the LREB, NOREB, and SEKEB economic blocs. A multi-stage sampling technique yielded 1,219 finance staff as respondents. Data were collected through questionnaires and secondary records and analyzed using descriptive statistics and Structural Equation Modeling. The findings indicated that financial accountability promoted transparency, stakeholder engagement, and access to funding. The study concludes that financial accountability is shown to be a critical determinant of sustainability, enhancing transparency, enabling oversight, and building public confidence. Mechanisms such as disclosure of financial information and citizen engagement play a significant role in ensuring that resources are used appropriately and that deviations are addressed. It recommends county governments should prioritize strengthening internal control systems to enhance fiscal discipline and prevent financial mismanagement. This can be achieved by regularly reviewing and updating financial processes to ensure they align with the best practices in public sector financial management.