Abstract:
Budgetary participation is the involvement of all employees in the budgetary process and their inputs
used to; influence setting of budgetary targets, assist in problem solving, promote information sharing among
administrative levels and enhance performance leading increased employee motivation. The study sought to
investigate the effect of employee participation in the budgetary planning on employee motivation in micro finance
institutions in Kericho County. The study was anchored on stakeholder’s theory, motivation theory, theory of
planned behavior and vroom’s expectancy theory. The research adopted a descriptive research design and was
undertaken in Kericho County which is one of the counties created under the new Constitution of 2010. The target
populations for the study was 1123 employees of Microfinance Institutions in Kericho County who were clerks,
sales/marketers, accountants and tellers, where a sample size of 295 respondents was randomly sampled based on
Yamane (1973) formula. Data collection instrument used was a structured questionnaire which was based on drop
and pick basis. Both descriptive statistics and inferential statistics (correlation and regression analysis) was used
in analyzing data with the help of Statistical Package for Social Sciences Version 24 (SPSS-24) and findings are
presented mainly in form of tables while qualitative data was analyzed through narrations.
