Abstract:
County Governments experience financial distress in different forms. Counties have adopted
several financial distress management practices but still there is limited knowledge on the
relationship between financial planning practices and performance of Counties prompting the
need to carry out this study. The study was anchored on financial distress theory. Correlation
survey research design was used and targeted County Executive Committee Members,
financial officers, Chief Officers and County accountants from various departments in Kericho,
Bomet and Narok Counties. The target population was 207 respondents with a sample size of
136 respondents selected using stratified and random sampling technique. Primary and
secondary data were used for the study where primary data was collected using questionnaires.
Instrument validity was determined by use of the content experts and supervisors while
instrument’s reliability was determined by use Cronbach’s alpha coefficient. Obtained data was
analyzed using both descriptive and inferential statistical techniques. The study findingsrevealed that financial planning practices has a positive relationship with performance of
counties (R=0.749, β1 = 0.506). The study recommended that good budgeting and budget
implementation practices should be put in place to help the county government to control, use
and evaluate effective use of resources. The findings of this study could benefit County
managements to turn around the financial fortunes and in dealing with their financial
shortcomings. The study suggest further research to be conducted on other factors affecting
performance of county governments since independent variables under study contributed 88.7%
of the performance of county governments.
