FACTORS AFFECTING THE IMPLEMENTATION OF INTEGRATED

FINANCIAL MANAGEMENT AND INFORMATION SYSTEM (IFMIS) IN

THE PUBLIC SECTOR IN KENYA

LAWRENCE WAKAMORI WAMBU

BUS-1-8540-3/2013

A Research Project Submitted In Partial Fulfillment of the Requirement for Bachelor in

Business Administration (Finance Option) of Kenya Methodist University

December, 2015

DECLARATION
I declare that this research proposal is my original work and has not been presented in any other
university or institution of higher learning for examination/ academic purposes.

Lawrence Wambu

Date: . Sign: ..

This research proposal is submitted to the Kenya Methodist University for defense with the
approval of my supervisor.

Mr. Vincent Date: Sign: ..

Kenya Methodist University

Department of Business and Management

DEDICATION
This study is dedicated to my family.

ACKNOWLEDGEMENT
I acknowledge with gratitude my project supervisor, Mr. Vincent, whose patience, guidance, cooperation, suggestions and constructive criticisms were instrumental in the preparation of this
research paper. Your selfless and noble actions throughout the pursuit of this entire course are
the most radiant pages in the biography of my soul. I am especially grateful for the support you
offered, to enable me concentrate on this course. I am thankful for your intellectual contribution
on various aspects of this project. To my family, you inspire me to continuously improve myself
and be a better person. Thank you for your prayers and the sincere interest you took in my
academic progression.
.

TABLE OF CONTENTS
DECLARATION.............................................................................................................................ii
DEDICATION................................................................................................................................iii
ACKNOWLEDGEMENT..............................................................................................................iv
TABLE OF CONTENTS.................................................................................................................v
LIST OF FIGURES........................................................................................................................ix
LIST OF ABBREVIATIONS..........................................................................................................x
ABSTRACT...................................................................................................................................xi
CHAPTER ONE.............................................................................................................................1
INTRODUCTION..........................................................................................................................1
11 Background of the Study...........................................................................................................1
1.2 Statement of the Problem...........................................................................................................3
1.3 Purpose of the Study..................................................................................................................4
1.4 Research Objectives...................................................................................................................4
1.4.1 General Objective...................................................................................................................4
1.4.2 Specific Objectives.................................................................................................................4
1.5 Research Questions....................................................................................................................4
1.6 Significance of the Study...........................................................................................................4
1.7 Limitations of the Study............................................................................................................6
1.8 Scope of the Study.....................................................................................................................6
CHAPTER TWO.............................................................................................................................7
LITERATURE REVIEW.................................................................................................................7
2.0 Introduction................................................................................................................................7
2.1 Integrated Financial Management Information System............................................................7
2.2 IFMIS in Kenya.........................................................................................................................8
2.3 Public Financial Management System in Kenya.....................................................................11
2.4 Theories...................................................................................................................................13
2.4.1 System Theory......................................................................................................................13
2.4 Empirical Review....................................................................................................................14
2.4.1 Top Management Support.....................................................................................................16
2.4.2 Employee Commitment........................................................................................................17
2.4.3 Training/Capacity Building..................................................................................................18
2.5. Conceptual Framework...........................................................................................................19

CHAPTER THREE.......................................................................................................................20
RESEARCH METHODOLOGY..................................................................................................20
3.0 Introduction...............................................................................................................................20
31 Research Design......................................................................................................................20
33 Study Population......................................................................................................................20
34 Sampling Techniques and Sample Size..................................................................................23
2.5 Data Collection........................................................................................................................23
3.6 Data Analysis...........................................................................................................................23
CHAPTER FOUR.........................................................................................................................24
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS.....................24
4.0 Introduction..............................................................................................................................24
4.1 Demographic Characteristics...................................................................................................24
4.2 Extent of Usage of Public Sector Budgeting Module..............................................................25
4.3 Extent of Usage of Purchase Ordering Module.......................................................................26
4.3 Extent of Usage of Accounts Payable Module........................................................................26
4.4 Extent of Usage of Accounts Receivable Module...................................................................27
4.5 Extent of Usage of General Ledger Module............................................................................27
4.5 Extent of Usage of IFMIS in Cash Management.....................................................................28
4.5 Extent of Usage of Analytical Tools Module...........................................................................28
4.6 Total IFMIS Adoption..............................................................................................................29
4.7 Extent of Training on Use of IFMIS........................................................................................29
4.9 Extent of Possession of IFMIS Training Material...................................................................30
4.10 Extent of Information about how IFMIS will affect the Current Work Practices..................31
4.11 Extent of Sense of Ownership to the Implementation of IFMIS...........................................31
4.12 Extent of Involvement in all the Phases of Implementation of IFMIS..................................32
4.13 Extent of Willingness to Do More than the Job Description to Ensure the Success of IFMIS
.......................................................................................................................................................33
4.14 Extent to Which Top Management Considers Adoption of IFMIS as Strategically Important
.......................................................................................................................................................33
4.15 Extent to Which Top Management Has Allocated Resources for the Adoption of IFMIS....34
4.16 Extent to Which Top Management Has an Open Attitude towards Technological Changes.35
4.17 Extent to Which the Organization Provides Support for Employees to Learn Technology. .36
CHAPTER 5..................................................................................................................................37
SUMMARY OF THE MAJOR FINDINGS, CONCLUSIONS AND RECOMMENDATIONS. 37
5.0 Introduction..............................................................................................................................37
7

5.1 Summary of Major Findings....................................................................................................37

5.2 Conclusions..............................................................................................................................38
5.3 Recommendations....................................................................................................................39
5.4 Areas for Further Research......................................................................................................39
REFERENCES..............................................................................................................................40
APPENDICES...............................................................................................................................43
APPENDIX 1: QUESTIONNAIRE..............................................................................................43
APPENDIX II: TIME SCHEDULE..............................................................................................46
APPENDIX III: RESEARCH BUDGET......................................................................................47

LIST OF TABLES
Table 3.1 Distribution of Target Population
Table 4.1 Demographic Characteristics

LIST OF FIGURES
Figure I. Conceptual framework........................................................................................ 17
Figure 1: Extent of Usage of Public Sector Budgeting Module
Figure 2: Extent of Usage of Purchase Ordering Module
Figure 3: Extent of Usage of Accounts Payable Module
Figure 4: Extent of Usage of Accounts Receivable Module
Figure 5: Extent of Usage of General Ledger Module
Figure 6: Extent of Usage of Cash Management Module
Figure 7: Extent of Usage of Analytical Tools Module
Figure 7: Total IFMIS Adoption
Figure 8: Extent of Training on Use of IFMIS
Figure 9: Extent of Possession of IFMIS Training Material
Figure 11: Extent of Information about how IFMIS will affect the Current Work Practices
Figure 12: Extent of Sense of Ownership to the Implementation of IFMIS
Figure 13: Extent of Involvement in all the Phases of Implementation of IFMIS
Figure 14: Extent of Willingness to Do More than the Job Description to Ensure the Success of
IFMIS
Figure 15: Extent to Which Top Management Considers Adoption of IFMIS as Strategically
Important
Figure 16: Extent to Which Top Management Has Allocated Resources for the Adoption of
IFMIS
Figure 17: Extent to Which Top Management Has an Open Attitude towards Technological
Changes
Figure 18: Extent to Which the Organization Provides Support for Employees to Learn
Technology

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LIST OF ABBREVIATIONS
BPR
G2B
G2C

Enterprise Resource Planning

Government to Business Enterprises
Government to Citizens

G2G

Government to Government

ICT

Information and Communication Technology

IFMIS

Integrated Financial Management Information System

IPPD

Integrated Personnel and Pensions Database

LAIFOMS

Local Authority Integrated Financial Operations Management

LPO
OECD

Local
Purchase Order
Systems
Organisation for Economic Co-operation and Development

PEFA

Public Expenditure and Financial Accountability

PEM

Public Expenditure Management

PFM

Public Financial Management

IDPM

Institute for Development and Policy Management Report

SCOA

Single Chart of Accounts

TMCC

Top Management Commitment to Change Management

USAID

United States Agency for International Development

11

ABSTRACT
There is a broad agreement that freely functioning IFMIS can improve accountability by
providing real time information that financial and other managers can use to administer programs
effectively, formulate budget and manage resources. However, in spite of all these government
efforts to modernize and develop financial frameworks in the public financial management
through the ministry of finance, the implementation of IFMIS which was to increase efficiency
and effectiveness in service delivery has not been fully embraced. Therefore this study seeks
to fill this information gap by investigating factors that affect the implementation of IFMIS
in the public sector. This study adopted a descriptive survey design. The study targeted 19
National Government Ministries. The target population consisted of 3 officers in each of the 19
ministries in the National Government, concentrating on the finance, accounts and procurement
officers who are the ones that deal with the IFMIS system bringing the total population to 57
officers. Since the study population was small, the researcher studied the entire population. Data
was gathered using a questionnaire which incorporated various factors which could be used
to evaluate the desired variable. Data analysis was conducted using SPSS version. Data will be
presented using graphs. The study concludes that all ministries had adopted the usage of the
various IFMIS modules and features. It was also established that capacity building of the
intended users was above average. However, employee commitment and top management
support were found to be below average. The study recommended that the government ought to
endeavor to gain employee commitment and entreat the top management to become the
champions of IFMIS implementation by highlighting the benefits that would accrue from the
adoption of IFMIS.

12

CHAPTER ONE
INTRODUCTION
11

Background of the Study

Public finance management in various developed and developing countries, Kenya

included, face a number challenges (DFID, 2003). These challenges include, but are not
limited to, poor management of financial information, non-compliance to principles of good
governance such as transparency and accountability, lack of internal control and adherence
to key regulations, failure of the budget in fulfilling its role as a political steering
instrument, and non-conformity of public procurement procedures to existing market best
practice. Consequently, overall, resources fail to be adequately applied to economic
development and poverty reduction.
It is due to these public finance management challenges that the Government of Kenya has
for a long time been very much concerned with availability of real-time, reliable financial
information that financial managers can use to administer programs effectively, formulate
budgets, and manage resources from an informed point. A review by the Department of
Accountant General at Treasury on financial management, accounting systems and role of
audits (KPMG/ Accountant General Report; June 1997), revealed weaknesses in the
management of financial information. The review focused on the need to develop a strategic
plan aimed at improving the financial management system, skills and capacity within the
government financial operation units. It also reviewed how timeliness of financial
information, if improved, could form the basis for improving control of expenditure against
budget.

This follows a growing interest in the quality of public sector finance management in
developing countries by the Donor Community. In contrast, during the cold war, aid was
generously, but often doled out to political allies with few questions. In the early years after
the fall of the Berlin Wall in 1989, interest in the state was limited. However, following the
World Bank's Report (World Bank, 1994), the role of the state has become increasingly
prominent in development efforts, and particularly in the drive against poverty. The new
agenda recognized that, while there may be too much state intrusion in the economy, there
was also often too little government capacity to make policy, perform basic administrative
functions, work with private partners, and ensure the provision of infrastructure and public
services. In 2001, the UK's Department for International Development (DFID, 2003) issued
its guide on public expenditure management which noted that, there had been a dramatic
surge of interest in public expenditure issues amongst governments, development agencies
and the wider public. This shift offered Africa that chance to leapfrog intermediate stages of
development.
As a result, consultants and other advisors of governments in Africa started toying with the
idea of introducing a modem information technology -The Integrated Financial
Management and Information System (IFMIS). More narrowly defined, a Financial
Management Information System, or an Integrated Financial Management and Information
System (IFMIS), is an information system that tracks financial events and summarizes
financial information. In its basic form, an IFMIS is little more than an accounting system
configured to operate according to the needs and specifications of the environment in which
it is installed.
Since 1997, the Government of Kenya has been implementing wide ranging public finance
reforms aimed at improving financial management, accountability, and transparency of

public funds, (GoK, 1997). During the first two phases over the first three years, a number
of diagnostic reviews were conducted and an Integrated Financial Management and
Information System developed.
An IFMIS is a fiscal tool for government that bundles all financial management functions
into one suite of applications. It is an Information Technology (IT) based budgeting and
accounting system designed to assist the government entities on how to plan budget
requests, spend their budgets, manage and report on their financial activities, and deliver
services to the public more efficiently, effectively and economically. IFMIS operates on a
common structure and platform that will enable improved compatibility and consistency of
fiscal and financial information, reduces governments overall investment in the
development of expensive accounting systems in each government entity. One of the basic
features of the IFMIS is the ability to interface with a number of existing and planned
automated systems such as the Integrated Personnel Payroll Data (IPPD) and Government
Payments Solution (G-pay).
1.2 Statement of the Problem
There is a broad agreement that freely functioning IFMIS can improve accountability by
providing real time information that financial and other managers can use to administer
programs effectively, formulate budget and manage resources. However, in spite of all these
government efforts to modernize and develop financial frameworks in the public financial
management through the ministry of finance, the implementation of IFMIS which was to
increase efficiency and effectiveness in service delivery has not been fully embraced. It is
on this background that the study aims at assessing the factors that affect the
implementation of IFMIS in the public sector.

1.3 Purpose of the Study

The purpose of this study is to investigate the factors that affect the implementation of
IFMIS in the public sector and come up with findings that will enhance the implementation
of IFMIS and hence promote prudent financial management in the public sector.

1.4 Research Objectives

The study addressed itself to the following objectives:
1.4.1 General Objective
To establish the factors that affect the implementation of IFMIS in the public sector.
1.4.2 Specific Objectives
1. To determine the effect of top management support on the implementation of IFMIS
2. To establish the effect of employee commitment on the implementation of IFMIS
3. To investigate the effect of capacity building on the implementation of IFMIS
1.5 Research Questions
1. What is the effect of top management support on the implementation of IFMIS?
2. What is the effect of employee commitment on the implementation of IFMIS?
3. What is the effect of capacity building on the implementation of IFMIS?

1.6 Significance of the Study

The findings of the study will be important to the government policy makers in identifying
the factors that determine the successful implementation of the IFMIS which is a crucial
element in increasing transparency, accountability, as well as responsiveness of public
financial resources to enhance the quantity and quality of public service delivery to meet its
developing priorities. The findings will be useful in overcoming the barriers to successful
implementation of IFMIS.

1.7 Limitations of the Study

The study might be constrained by use of questionnaire which do not offer the researchers
the opportunity to follow up ideas used to clarify issues. Fixed choice questionnaires
generally assume an unstated general knowledge of the topic being investigated, and force
the respondent to answer questions that he/she might be ignorant of, have a different
understanding based on personal perception or which are influenced by exogenous features
such as education, culture or societal status.
Self-reported data is limited by the fact that it rarely can be independently verified.
However, self-reported data contain several potential sources of bias: (1) selective memory
(remembering or not remembering experiences or events that occurred at some point in the
past); (2) telescoping (recalling events that occurred at one time as if they occurred at
another time); (3) attribution (the act of attributing positive events and outcomes to one's
own agency but attributing negative events and outcomes to external forces); and, (4)
exaggeration (the act of representing outcomes or embellishing events as more significant
than is actually suggested from other data).
1.8 Scope of the Study
The study confined itself to government ministries in Kenya. The target population included
all officers in finance, accounts and procurement departments. The content scope included
the effect of top management, employee commitment and capacity building to IFMIS
implementation.

CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter will provide the reader with important facts, theories and models in order to
increase the understanding of the area under investigation. The chapter will also identify
what other authors have found out in the area of IFMIS.
2.1

Integrated Financial Management Information System

E-government uses the e-commerce tools to make the interaction between government and
citizens (G2C), government and business enterprises (G2B), and inter-agency relationships
or government to government (G2G) more friendly, convenient, transparent, and
inexpensive. Seifert (2003) said that the G2G sector represents the backbone of egovernment. In Kenya solutions adopted for G2G sectors include the Integrated Financial
Management Information System (IFMIS). Rodin-Brown (Rodin-Brown, 2008) notes that
in the scale and scope of an IFMIS can vary, from simple General Ledger System to a
comprehensive system addressing budget, revenue, expenditure control, debt, resource
management, human resources, payroll, accounting, financial reporting, and auditing
processes across central government or even including local government and other public
sector and quasi-governmental agencies and operations.
Rodin-Brown (Rodin-Brown, 2008) summarised an integrated financial management
information system (IFMIS), as an information system that tracks financial events and
summarizes financial information. He noted that in the government realm, IFMIS includes
the computerization of public financial management (PFM) processes, from budget

preparation and execution to accounting and reporting, with the help of an integrated system
for financial management of line ministries, spending agencies and other public sector
operations. Sound systems, strong legal and regulatory frameworks as well as a competent
and productive civil service are the cornerstones of an efficient PFM regime.
Diamond and Khemani (Diamond & Khemani, 2005) said that an IFMIS consists of several
elements with different functions. He identified the core of an IFMIS to include the
following modules and systems, General ledger, Budgetary accounting, Accounts payable
and Accounts receivable, and the noncore or other modules as, Payroll system, Budget
development, Procurement, Project ledger and Asset module. Generally it is agreed that
integration is the key to any successful IFMIS and integration implies that the system uses
standard data classification for recording financial events; has internal controls over data
entry, transaction processing, and reporting; and has common processes for similar
transactions and a system design that eliminates unnecessary duplication of data entry
(Rodin-Brown, 2008).
According to Rodin-Brown (Rodin-Brown, 2008) the challenges of implementing
successful IFMIS include resistance from the bureaucracies involved; lack of decisionmaking from the top; weak human capital; corruption and fraud; IFMIS systems are
complicated, expensive, and difficult to manage and maintain; inadequate setting up the
chart of accounts; planning; poor communications between implementers, donors, and
Government; shortage of management capacity and resources; changes in systems design
documents without full agreement; poorly implemented trainings; and unnecessary and
spurious project expenditures.

2.2 IFMIS in Kenya

The Economic Recovery Strategy for Wealth and Employment Creation (Government of
Kenya;, 2003), identified PFM reforms as key to achievement of fiscal sustainability and
balance in the public economy, restructuring and re-allocations for growth and poverty
alleviation, improved public sector performance and efficiency and effectiveness in the
National Government. National Government utilizes public finance to provide goods works
and services to members of the public and does so by way of the public sector. The
Organisation for Economic Co-operation and Development (OECD; 2007) describes the
public sector as comprising the general government sector plus all public corporations
including the central bank. According to the Oxford Policy Management (Oxford Policy
Management Limited;, 2011), the way public sector budgets are set, managed, and reported
on and the strengthening of public financial management is due to an increased demand for
transparency in the way public funds are used the realisation of that public financial
management (PFM) is pivotal to economic and developmental success.
The Kenya Vision 2030 (Government of the Republic of Kenya, 2008) has a vision for
public service as a citizen-focused and results-oriented institution serving a rapidly
growing economy and society. Furthermore Kenya recognises that a modern and resultsfocused public service is a prerequisite for the countrys socio-economic transformation as
envisaged under Vision 2030. To this end, measures have been initiated in order to improve
public service delivery with e-government being one of them. The Constitution sets out the
overall guidelines on the management of public resources and provides for enactment of
specific legislation to give effect to the same. The Strategy for Public Finance Management
Reforms in Kenya 2013-2018 (Government of Kenya;, 2013) provides a framework for
implementing reforms envisaged in the Constitution, the Public Finance Management Act

2012 and other Public Finance legislation (enacted pursuant to the provisions of Chapter 12
of the Constitution), as well as taking forward the reform agenda started under the 20062011 PFM strategy.
Kenya has been implementing a broad-based public reform program partly founded on an
e- government vision which was officially articulated in 2004 with the adoption of the EGovernment Strategy. A number of institutions have been setup to help in the attainment of
this vision such as the Kenya E-Government Secretariat and solutions adopted such as
Integrated Financial Management Information System (IFMIS), and the Local Authority
Integrated Financial Operations Management Systems (LAIFOMS).
The IFMIS Re-Engineering Strategic Plan 2011-2013, said that the development of the
IFMIS an Oracle based Enterprise Resource Planning (ERP) Software, started in 1998
whilst deployment of the system to line ministries commenced in 2003. The original system
covered Public Sector Budgeting, Purchase Ordering, Accounts Payable, Accounts
Receivable, General Ledger and Cash Management as well as supplying analytical tools.
The report says that this system has been deployed in line ministries and the IFMIS ReEngineering Strategic Plan 2011-2013 states that in line with the Public Financial
Management Act 2012 (Article 12), the IFMIS has been implemented to connect all
government ministries, agencies and departments to a core network for purposes of
effecting a single public financial management system, there has been stabilization of three
accounting modules i.e. General Ledger, Purchasing Order and Accounts Payable and
activation of additional modules such as cash management, accounts receivables, and fixed
assets.
The report further states that there has been the development of a new Single Chart of

10

Accounts (SCOA) mapped into the IFMIS system and the 2012-2013 national budget
developed using the new SCOA. The district Vote book system was also updated with the
new SCOA. IFMIS has also developed and implemented a Plan to Budget system that has
enhanced the efficiency and effectiveness of budget making which was used to develop the
revised budget in December 2012. A Procure to Pay system is under development and once
fully implemented, the full procurement process from planning, requisition, procurement of
goods and services, and payment of suppliers will be automated. Finally an IFMIS
Academy has been established to build capacity of IFMIS end users in ministries,
departments and agencies.
2.3 Public Financial Management System in Kenya
The Strategy for Public Finance Management Reforms in Kenya 2013 (Government of
Kenya;,
2011)

notes that since independence, the Government has undertaken various

public finance reform initiatives. The Strategy for the Revitalization of Public
Financial Management System in Kenya played a prominent role in guiding reforms
in the PFM Sector and building on the institutional transformation from 2006-2011.
Key areas were targeted for reform, including transformation of political priorities
into annual budget allocations; credibility of budget;
rollout of the Integrated Financial Management System (IFMIS) and quality, timeliness and
accuracy of financial reports.
IFMIS Re-Engineering Strategic Plan 2011-2013 (Office of the Deputy Prime Minister and
Ministry of Finance, 2011) said that the development of IFMIS in Kenya started in 1998
whilst deployment of the system to line ministries commenced in 2003. It added that the

11

Government of Kenyas IFMIS is an Oracle based Enterprise Resource Planning (ERP)

Software. In 2003 the Ministry of Finance contracted a Vendor to deliver the Oracle based
IFMIS with the following modules procured; The Public Sector Budgeting; Purchase
Ordering, Accounts Payable; Accounts Receivable; General Ledger (GL) and Cash
Management (CM) plus additional analytical tools like Oracle Financial Analyzer and the
Financial Statements Generator. The Government noted that this modular approach did not
promote the intended integration and created many systemic weaknesses as a result a new
strategy was adopted where there is a full cycle end-to-end integrated approach. This new
strategy resulted in the processes being redefined and strategic interventions undertaken for
the re-engineering of IFMIS which has been now been categorized as follows; Reengineering for Business results (BPR); Plan to Budget; Procure to Pay; Revenue to Cash CM; Records to Report - GL; ICT to Support; and Communicate to Change (Office of the
Deputy Prime Minister and Ministry of Finance, 2011).
IFMIS Re-Engineering Strategic Plan 2011-2013 defines BPR as a process that will address
the disparities between the existing manual processes and suitable automated processes
before workflows are fully implemented which will provide the requisite oversight and
controls and allow IFMIS to perform the PFM function more efficiently and securely than
is currently the case. Plan to Budget encompasses all activities related to annual planning
and budgeting (revenue, cost, profit, cash flow, and capital / investment), allocation of
resources to meet these plans, and the provision for a mid-year revision of the annual
budget. Procure to Pay are the end to end processes that commence from procurement of
goods and services to payment of the suppliers and may include a basic procurement
processes such as: purchase requisitions, receipts matched to invoices when delivered, then
payment; it may also entail a more complex cycle such as use of different sourcing rules to

12

determine suppliers, recording receipts into inventory according to supplier shipping

notifications, creation of invoices from the inspection process and payment directly into the
suppliers bank accounts.
IFMIS Re-Engineering Strategic Plan 2011-2013 defines Revenue to Cash as all the
activities related to revenue and cash management from generation, collection, and
recording of revenue to distribution of funds to the ministries. It also involves management
and control of the actual and forecasted cash inflows and outflows. Records to Report
provides a structure for effectively recording transactional data from all processes,
processing that data right through to the production of regulatory, financial and
management reports. It begins with the collection of source transactions and other
accounting data and ends with the creation of reports. It encompasses the majority of
activities typically referred to as general accounting. ICT to Support provides the
technical support underpinning effective and efficient automation of all the IFMIS process
levels. It anchors a dedicated support function for software, hardware and infrastructure.
Finally Communicate to Change focuses on aspects of change management, capacity
enhancement as well as information generation and dispersion, education and effective
communication among IFMIS stakeholders.
2.4 Theories
2.4.1 System Theory
In Systems theory, Wang (2005) refers to information in the sense that assuming
information does not necessarily involve any conscious mind, and patterns circulating (due
to feedback) in the system can be called information. In other words, it can be said that
information in this sense is something potentially perceived as representation, though not

13

created or presented for that purpose. According to Kangethe (2002), a system is a group
of related and interacting components, which work together to achieve a desired purpose or
set of objectives. The writer further observes the need to have control elements to ensure
that the process gives the desired level of out-put and avoid or reduce wastage. The need
for efficiency and effectiveness therefore brings forth another need of ensuring harmony
and synergy between the human resource as the core resource that controls other resources
on the one hand and the other tools of trade, in particular modern ICT on the other hand so
as to realize the objectives of office secretarial management. There is therefore the clear
need to understand the perception of human resource and areas with potential for conflict in
the course of interaction between the human resource and modern ICT. When computer and
communication technologies are combined, the result is information technology systems, or
"InfoTech". Information technology is a general term that describes any technology that
helps to produce, manipulate, store, communicate, and/or disseminate information.
Presumably, when speaking of information technology as a whole, it is noted that the use of
computers and information are associated.
Emerging Information and Communication Technology (ICT) can play an important role in
fighting corruption in public finance systems by promoting greater comprehensiveness and
transparency of information across government institutions. As a result, the introduction of
IFMIS has been promoted as a core component of public financial reforms in many
developing countries. Yet, experience shows that IFMIS projects tend to stall in developing
countries, as they face major institutional, political, technical and operational challenges.
Case studies of more successful countries indicate that factors supporting successful
implementation include clear commitment of the relevant authorities to financial reform
objectives, ICT readiness, sound project design, a phased approach to implementation,

14

project management capability, as well as adequate resources and human resource capacity
allocated to the project (Chena, 2009).
2.4 Empirical Review
According to USAID (2008) report, integrated financial management information system is
an information system that tracks financial events and summarizes financial information.
Generally it refers to the use of information and communication technology in financial
operations to support management and budget decisions, fiduciary responsibilities and the
preparations of financial reports and statements. In the government realm, IFMIS refers
more specifically to the computerizations of PFM process from budget preparation and
execution to accounting and reporting with the help of an integrated system for financial
management of line ministries, spending agencies and other public sector operations. The
principal element that integrates an IFMIS is a common, single, reliable platform
database (or a series of interconnected databases) and from which all data expressed in
financial terms flow (Casals, 2004).

Since 1990, governments around the world have been executing major technological
limitations in order to take advantage of the potential of emerging information and
communication technology. IFMIS enhances effectiveness and transparency of the system
by computerizing the process in which public financial resources are managed. However,
the results from international experience with IFMIS, including World Bank have been so
far quite mixed. While some countries have improved on transparency of public financial
management processes, many other countries were found that their reforms have not been
fully successful in combating corruption. This is according to E-Transparency Conference
organized by Institute for Development and Policy Management Report (IDPM) 2003. The

15

report further stated that IFMS consists of several sub-systems which plan, process and
report public financial resources. The basic sub-systems include accounting, budgeting,
cash management, debt management and related core treasury systems. In addition to this
basic set of core sub-systems, countries have often chosen to enhance their IFMIS with
non-core systems such as revenue collection (tax and customs), procurement management
(often called e-procurement), asset management, human resource and payroll systems and
pension and solid security system (IDPM, 2003).
Barry (2001) says that the level of complexity of IFMIS is much higher than other ICTbased government reforms due to inherent complication of public financial management
system. It involves not only ministry of finance but also all line ministries and other
multiple spending units. However, integrated public financial management system is quite a
challenging task and requires multiple conditions to be satisfied for successful
implementations of long term sustainability. Even though ICT automates the tasks involved
in performing business processes such as purchase requisitions, quotations, quotations
analysis, and preparation of local purchase orders, deliveries and goods receipts. With
IFMIS programs changes the way government information is captured, summarized and
communicated and the benefits of these advances should not be underestimated. The
introduction of IFMIS system should not just be seen as a technology fix, since simply
automating tasks that did not need to be carried out in the first place rather IFMIS
implementation should be seen as a public financial reform that affects how things are done
across government ministries and parastatals (Diamond and Khemani, 2005).
2.4.1 Top Management Support
Among IS implementation studies, top management commitment is one of the most studied

16

factors in successful IS implementation. (Top management commitment to change

management TMCC) depicts the extent to which top management engages in promoting
organizational receptivity of IT innovation by training, by formal presentation, and by
establishing communication channels with targeted users (Marginson, 2002). By informing
targeted users about the characteristics of innovation and their impact on the organization
and targeted users, TMCC reduces uncertainties around technical changes and
organizational transformation. Also, it promotes the fit between innovation and targeted
users values, and eventually alleviates misuse and resistance to innovation usage.
In addition, it is believed that efforts devoted to solving difficult change management
problems would pay off in terms of implementation success, whereas inability to manage
organizational change would most likely lead to implementation failure. The most
important factor when implementing a strategy is the top level managements commitment
to the strategic direction itself. This is undoubtedly a prerequisite for strategy
implementation. Therefore, top managers must demonstrate their willingness to give energy
and loyalty to the implementation process. This demonstrable commitment becomes, at the
same time, a positive signal for all the affected organizational members (Rapa & Kauffman,
2005).
2.4.2 Employee Commitment
Institutional factors determine the outcome of automating public financial management.
Experience shows that the best designed project will fail without firm commitment. It is
therefore important to adequately assess commitment to reform. The most important thing
when implementing a strategy is the employees commitment to the strategic direction itself.
This is undoubtedly a prerequisite for strategy implementation. Therefore, top managers
must demonstrate their willingness to give energy and loyalty to the implementation

17

process. This demonstrable commitment becomes, at the same time, a positive signal for all
the affected organizational members. To successfully improve the overall probability that
the strategy is implemented as intended, senior executives must abandon the notion that
lower-level managers have the same perceptions of the strategy and its implementation, of
its underlying rationale, and its urgency. Instead, they must believe the exact opposite. They
must not spare any effort to persuade the employees of their ideas (Huse & Gabrielsson,
2004).
2.4.3 Training/Capacity Building
Capacity building is a major factor affecting the success of IFMIS implementation,
especially in developing countries where IT-capacity is limited and the public sectors
salary structure and terms of employment usually cannot attract and retain well trained
staff. Capacity building and training need to be scoped during the early stage of the need
assessment process. The process should allow for the identification of various user groups,
assess the level of knowledge, recruiting needs, and define the scope of the training
curricula, targeting the various key audiences (Balogun, 2003). Training should begin from
the beginning of the reform, starting by those who will be most immediately affected by
IFMIS reform. A broader and permanent training programme should also be developed and
implemented.
Given the nature of institutions and organizations, capacity building is a never-ending
process. It needs to be ongoing and permanent (Davenport & Brooks, 2004). This requires,
therefore, establishment of a sound permanent authority within government, empowered to
carry these functions forward. Chakravarthy & White, (2001) suggest that education and
training policies depend on a firms management culture and forms of management-led

18

organizational change. Fahy, (2000) indicated that there are two management
characteristics; innovation commitment and resistance to change. Two forms of
management-led organizational change; firm downsizing and work redesign, shape
education and training strategies. He also finds that tr aining, development and school
relations are a focal point for redesigning management, while downsizing focuses on entrylevel training.

Top Management
Support

2.5. Conceptual Framework

Independent variables

Dependent variable

Employee

Implementation

Commitment

of IFMIS

Training/
Capacity Building
19

Fig I: Conceptual Framework

Source: Author (2015).
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter describes the research design used, data collection instruments,
measurement and analysis, target population, sampling techniques and data analysis
methods used.
31 Research Design
A research design is defined as an overall plan for research undertaking (Saunders, Lewis
& Thornhill, 2009). This study will adopt a descriptive survey design which according to
Churchill (1991) is appropriate where the study seeks to describe the characteristics of
certain groups, estimate the proportion of people who have certain characteristics and
make predictions. Descriptive survey has been recommended because of its use in
preliminary and exploratory studies to allow researchers to gather information and

20

summarize, present and interpret data for the purpose of clarification (Orodho, 2003). Gay
(1992) asserted that surveys are self-report study that requires the collection of
quantifiable information from the sample. They are useful for describing, explaining or
exploring the existing status of two or more variables (Mugenda and Mugenda, 1999).
33 Study Population
Study population is the specific items about which information is desired. According to
Ngechu (2004), a population is a well-defined or set of people, services, elements, events,
group of things or households that are being investigated. The study will target 19
National Government Ministries. The target population will consist of 3 officers in each of
the 19 ministries in the National Government, concentrating on the finance, accounts and
procurement officers who are the ones that deal with the IFMIS system bringing the total
population to 57 officers.

Table 3.1 Distribution of Target Population

Name Of Ministry
Finance
Department
Officers
1
Interior and
Coordination of
National Government
1
Devolution and
Planning
1
National Treasury
1
Defence
1
Foreign Affairs
1
Education
1
Health
1
Transport and
Infrastructure
1
Information,
Communication and
Technology
1
Environment and
Natural Resource
1
Water and Irrigation

21

Accounts
Department
Officers

Procurement
Department
Officers

1
1
1
1
1
1

1
1
1
1
1
1

Land, Housing and

Urban Development
Sports, Culture and
the Arts
Labour, Social
Security and Services
Energy and Petroleum
Agriculture,
Livestock and
Fisheries
Industrialization and
Enterprise
Development
East Africa Affairs,
Commerce, and
Tourism
Mining
TOTAL

1
1

1
1

1
1

1
19

1
19

1
19

22

34 Sampling Techniques and Sample Size

Naoum (2007) defined a sample size as finite part of a statistical population whose
properties are studied to gain information about the whole. Orodho (2003) defined
sampling as selecting a given number of subjects from a defined population as
representative of that population. Since the study population is small, the researcher will
study the entire population.
2.5 Data Collection
Data will be collected using questionnaires. A structured questionnaire will be used to
collect primary data. The questionnaires are preferred in this study because respondents of
the study will be a s s u m e d to be literate therefore able to answer questions asked
adequately. Kothari (2004) terms the questionnaire as the most appropriate instrument due
to its ability to collect a large amount of information in a reasonably quick span of time. It
guarantees confidentiality of the source of information through anonymity while ensuring
standardization (Churchill, 1991). It is for the above reasons that questionnaire method
has been chosen as an appropriate instrument for this study.
3.6 Data Analysis
The data from the field will be analyzed using both qualitative and quantitative
techniques. Before the actual data analysis, the gathered data will be validated, edited
and then coded. The coded data will be entered into the computer software; statistical
package for social sciences. Descriptive statistics such as percentages, frequencies and
standard deviations will used to analyze data. The research findings will be presented
using frequency tables, percentages, cross tabulation, pie charts and bar graphs.

23

24

CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS
4.0 Introduction
This chapter covers the analysis of the data, presentations and discussions of the results for
the study on adoption of integrated financial management information system (IFMIS) by
the National Government in Kenya. The results were obtained from analysis and
interpretation of the collected data. The data was obtained from questionnaires administered
to those responsible with accounting, budgeting/finance and procurement in the National
Government Ministries of Kenya.
4.1 Demographic Characteristics
Data was collected from a sample of respondents from 57 questionnaires distributed of
which 40 were completed. The response rate of 70 % was attributed to the eagerness of
respondents in using this technology.
Table 4.1 : Demographic Characteristics

Variable
Gender

Classification of
Respondents

Female
Male
Below 25 years
Age
25 - 30 years
31 - 40 years
41 - 45 years
Above 45 years
Education below O Level
Secondary
level
Diploma
Degree
Post graduate
Department Finance /
Budgeting
Accounts
Procurement

25

Frequency Percentage
17
23
2
10
10
6
12
0
7
11
18
4
14

42%
58%
5%
25%
25%
15%
30%
0%
18%
28%
45%
10%
35%

11
15

28%
38%

Table 1 show that most of the respondents were in the age group of 25 and above (95%).
Only 10% had post graduate level education with the majority (45%) having undergraduate
level education. The departments that responded were evenly distributed among Finance,
Accounts and Procurement.
4.2 Extent of Usage of Public Sector Budgeting Module

30%

25%

20%

15%

30%

27%
23%

10%
10%

5%

0%

Very Little

Little

10%

Moderate

Large

Very Large

Figure 1: Extent of Usage of Public Sector Budgeting Module

Source: Author, (2015)
Figure 1 indicates that 37% used the public sector budgeting to a large or very large extent,
with most respondents, 60% (22.5%+27.5%+10%) having used it to some extent, but a
total of 30% did not used it a little to very little.

26

4.3 Extent of Usage of Purchase Ordering Module

Very Little; 25%

Very Large; 33%

Moderate; 13%
Large; 30%

Figure 2: Extent of Usage of Purchase Ordering Module

Source: Author, (2015)
Figure 2 indicates that 76% (12.5%+30%+32.5) used the Purchase Ordering moderately
and above which was most respondents. A total of 25% used it very little.
4.3 Extent of Usage of Accounts Payable Module
53%

Ve r y L a r g e

30%

L a rg e

Mo d e r a te

Little

Ve r y L i t t l e

5%

0%

13%

Figure 3: Extent of Usage of Accounts Payable Module

Source: Author, (2015)

27

Figure 3 indicates that most ministries used the Accounts

Payable module to a large extent, with most respondents,
82.5% having used it to a large extent, but a total of 12.5%
used it very little.
4.4 Extent of Usage of Accounts Receivable Module

Very Little; 25%

Very Large; 43%
Little; 18%
Large; 10% Moderate; 5%

Figure 4: Extent of Usage of Accounts Receivable Module

Source: Author, (2015)
Figure 4 indicates that 42.5% used the Accounts Receivable to a very large extent, while
42.5% (25%+17.5%) used it from little to very little. This indicates that almost half of the
respondents either had not used the module or used it a little.

28

4.5 Extent of Usage of General Ledger Module

53%

25%
13%

10%
0%

Very Little

Little

Moderate

Large

29

Very Large

Figure 5: Extent of Usage of General Ledger Module

Source: Author, (2015)
Figure 5 indicates that over half the respondents 52.5% used the General Ledger to a very
large extent, with most respondents, 88% (10%+25%+52.5%) having used it to some extent.

4.5 Extent of Usage of IFMIS in Cash Management

Very Large; 28%

Very Little; 28%

Large; 20%

Moderate; 25%

Figure 6: Extent of Usage of Cash Management Module

Source: Author, (2015)
Figure 6 indicates that the use of Cash Management has over 70% using it from
moderately to a large extent with a very large percentage 27.5% used it very little.
4.5 Extent of Usage of Analytical Tools Module
Very Large

17.50%

Large

17.50%

Moderate

17.50%

Little 2.50%
45.00%

Very Little
0%

5%

10%

15%

20%

25%

30

30%

35%

40%

45%

Figure 7: Extent of Usage of Analytical Tools Module

Source: Author, (2015)
4.6 Total IFMIS Adoption
28%

27%

30%
25%
20%

18%
14%

15%
7%

10%

7%

5%
0%

None

Very Little

Little

Moderate

Large

Very Large

Figure 7: Total IFMIS Adoption

Source: Author, (2015)
Figure 7 indicates that 45% used the Analytical tools very little which was the highest
frequency. The percentage that used it from moderate to very large only 54%.
4.7 Extent of Training on Use of IFMIS
Very Little

Little

Moderate

Large

5%
25%

15%

55%

31

Very Large

Figure 8: Extent of Training on Use of IFMIS

Source: Author, (2015)
Figure 8 demonstrates training of IFMIS had been conducted to 100% of respondents with
80% (55%+25%) having had a large or very large extent for training.
4.9 Extent of Possession of IFMIS Training Material

Very Large; 14%

Little; 3%
Moderate; 20%

Large; 63%

Figure 9: Extent of Possession of IFMIS Training Material

Source: Author, (2015)
Figure 9 indicates that 98% of the respondents reported being above moderate in provision
of training materials

32

4.10 Extent of Information about how IFMIS will affect the Current Work Practices

18%

Very Large

48%

Large
25%

Moderate
Little

5%

Very Little

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Figure 11: Extent of Information about how IFMIS will affect the Current Work
Practices
Source: Author, (2015)
Figure 11 indicates over 90% have been informed how IFMIS will affect their current work
practices.
4.11 Extent of Sense of Ownership to the Implementation of IFMIS
50%
45%
40%
35%
30%
25%
43%

20%
33%

15%
10%
5%
0%

11%

8%
Very Little

Little

Moderate

33

Large

5%
Very Large

Figure 12: Extent of Sense of Ownership to the Implementation of IFMIS

Source: Author, (2015)

34

Figure 11 indicates that 84% of the respondents reported being below moderate in the sense
of ownership to the implementation of IFMIS.
4.12 Extent of Involvement in all the Phases of Implementation of IFMIS

Very Large; 8% Very Little; 15%

Large; 20%
Little; 15%

Moderate; 43%

Very Little

Little

Moderate

Large

Very Large

Figure 13: Extent of Involvement in all the Phases of Implementation of IFMIS

Source: Author, (2015)
On the extent involvement in all the phases of IFMIS, 15% were of the opinion that it was
very little, 15% little, 43% moderate, 20% large while 8% were of the opinion that it was
very large.

35

4.13 Extent of Willingness to Do More than the Job Description to Ensure the Success
of IFMIS
60%
50%
40%
30%

55.00%

20%
17.50%

10%
0%

10.00%

5.00%
Very Little

Little

Moderate

Large

12.50%
Very Large

Figure 14: Extent of Willingness to Do More than the Job Description to Ensure the
Success of IFMIS
Source: Author, (2015)
On the extent of willingness to do more than the job description to ensure the success of
IFMIS, figure 14 indicates that majority of the respondents were not willing (72.5%).
4.14 Extent to Which Top Management Considers Adoption of IFMIS as Strategically
Important

Very Large; 7%
Large; 16%

Very Little; 15%

Moderatly; 11%
Little; 51%

36

Figure 15: Extent to Which Top Management Considers Adoption of IFMIS as

Strategically Important
Source: Author, (2015)
Figure 15 indicates that majority of the respondents (66%) said that the top management did
not considers the adoption of IFMIS as strategically important.
4.15 Extent to Which Top Management Has Allocated Resources for the Adoption of
IFMIS
Figure 16 below indicates the extent to which top management has allocated resources for
the adoption of IFMIS. Majority of the respondents were of the opinion that they did not
commit enough resources to adoption of IFMIS.

37

Very Large 2%
Large

8%
15%

Moderate

39%

Little

36%

Very Little
0%

5%

10%

15%

20%

25%

30%

35%

40%

Series 1

Figure 16: Extent to Which Top Management Has Allocated Resources for the
Adoption of IFMIS
Source: Author, (2015)

4.16 Extent to Which Top Management Has an Open Attitude towards Technological
Changes
50%
45%
40%
35%
30%
25%
20%

45%

15%
21%

10%

21%
11%

5%
0%

Very Little

Little

Moderate

Large

2%
Very Large

Figure 17: Extent to Which Top Management Has an Open Attitude towards
Technological Changes
Source: Author, (2015)

38

On the extent to which top management has an open attitude towards technological changes,
45% of the respondents said it was very little, 21% little,21% moderate, 11% large and only
2% were of the opinion that it was very large.
4.17 Extent to Which the Organization Provides Support for Employees to Learn
Technology

60%

52%

50%
40%
30%
18%
20%

13%

10%

10%
0%

Very Little

Little

Moderate

Large

7%

Very Large

Figure 18: Extent to Which the Organization Provides Support for Employees to
Learn Technology
Source: Author, (2015)
Figure 18 indicates the extent to which the organization provides support for employees to
learn technology. 13% of the respondents were of the opinion that it was very little, 18%
little, 52% moderate, 10% large and 7% very large.

39

CHAPTER 5
SUMMARY OF THE MAJOR FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
5.0 Introduction
This chapter discusses the summary of findings, conclusions and recommendations.
5.1 Summary of Major Findings
This study aimed at establishing the factors that affects the implementation of
IFMIS in public sector. Among the factors covered included; capacity building, employee
commitment, and organizational top management support. The study showed that most of
the staff in the finance, accounts procurement departments were over the age group of 25
and above (95%). Undergraduate level education was most common at 45% with a minority
(10%) having post graduate level education. Male to female ratio favoured males at 58%.
One of the objectives of the research was to determine the extent of IFMIS adoption by the
National Government in Kenya. This was achieved by studying the use of the different
modules. The use of public sector budgeting module showed that it had been well adopted
with 80% having used it to some extent. The Purchase Ordering module had 76% use while
Accounts Payable module has 83% having used it. Accounts Receivable module had 43%
either who had not used it or used it a little and the General Ledger module was well used at
88%. Cash Management module had over 70% using it and Analytical tools module had
30% who did not use it.
The study sought to establish the extent of capacity building in the adoption of IFMIS in the
national government in Kenya. Training of IFMIS had been conducted to 100% of

40

respondents. The same was also seen with training materials where 98% reported provision
of training materials. Over 90% have been informed how IFMIS will affect their current
work practices and 95%.
The study also sought to establish the extent of employee commitment in IFMIS adoption.
Majority of the respondents were of the opinion extent of sense of ownership to the
implementation of IFMIS was below large (84%). 73% of the respondents were of the
opinion that the extent of involvement in all phases of IFMIS was below large. 72.5% of
the respondents were of the opinion that the willingness to do more than the job description
to ensure the success of IFMIS was below large.
The study sought to establish the extent of top management support. 66% of the
respondents said that the extent to which top management considers the adoption of IFMIS
as strategically important was below moderate. 75% of the respondents felt that the extent
to which top management has allocated adequate financial resources for the adoption of
IFMIS was below moderate. 66% of the respondents said that the extent to which the top
management has an open attitude towards technological changes was below moderate. On
the extent to which the organizations provided support for employees to learn technology,
31% of the respondents were of the opinion that it was above moderate while 52% said it
was moderate.
5.2 Conclusions
The study concludes that all ministries had adopted the usage of the various IFMIS modules
and features. It was also established that capacity building of the intended users was above
average. However, employee commitment and top management support were found to be
below average.

41

42

5.3 Recommendations
Employee commitment and top management support are vital antecedents in the success of
any project. The government therefore ought to endeavor to gain employee commitment and
entreat the top management to become the champions of IFMIS implementation by
highlighting the benefits that would accrue from the adoption of IFMIS.
5.4 Areas for Further Research
The researcher suggested issues for further study on the following; the drivers/determinants
that influence the adoption of the following IFMIS reengineering modules; Plan to budget,
procure to pay, and revenue to cash; the effect of IFMIS implementation on the legal,
legislative and policy frameworks in place.

43

REFERENCES
Barry, H.& J. Diamond (2004). Guidelines for Public Expenditure Management, International
Monetary Fund, Washington DC.
Casals and Associates (2004). Integrated Financial Management Systems Best Practices. Bolivia
and Chile, funded under USAID.
Churchill, W. (1991). Your Research Pro}ect: A Step-by-Step Guide for the First-time
Researcher. London: Sage Publications Inc.
Davenport, T.H., Brooks, J.D. (2004), Enterprise systems and the supply chain, Journal of
Enterprise Information Management, Vol. 17 No.1, pp.8-19.
DFID (2003). Making it Work; Implementing Effective Financial Information System in
Bureaucracies in Developing countries. United Kingdom, Discussion paper No.
447,HHD, P 1-26.
DFID (2003). Understanding and reforming public expenditure Management, Guidelines for
Department for International Development. www.dfid.gov.uk/pubs/files/pfma- pem.pdf
Diamond, J., & Khemani, P. (2005). Introducing Financial Management Information
Systems in Developing Countries. International Monetary Fund.
Fahy, M.J. (2000), Strategic enterprise management: the implications for management
accounting and control, paper presented at the 23rd Annual Congress of the European
Accounting Association, Munich, March 29-31.
GoK/ KPMG (June 1997). A taskforce report on strengthening government finance and
accounting functions. Government printer.
Government of Kenya;. (2003). Kenya economic recovery strategy for wealth and
employment creation. Nairobi: Ministry Of Planning and National Development.
Government of Kenya;. (2013). The National Government coordination Act no 1 of 2013.
Nairobi: Government Printer.

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Government of Kenya;. (2013). The Strategy for Public Finance Management Reforms in
Kenya 2013 - 2018. Retrieved June 13, 2015, from Public Finance Management
Reform Programme: http://www.pfmr.go.ke

Huse, M., Gabrielsson, J. (2004), Past trends and future challenges in research on boards and
governance: A review of major management journals between 1990-2002, paper
presented at 4th EURAM Annual Conference, St Andrews, 5-9 May.
Kangethe, P.M. (2002). ICT in Learning institutions. First Edition; Longman Publishers,
Nairobi, Kenya.
nd

Kothari, C.R. (2004). Research Methodology: Methods and Techniques (2

Edition), New

Age Publications.
KPMG;. (4 December 2012). PEFA Consultancy Services for Performance Evaluation of the
Public Financial Management Reforms Strategy 2006 - 2011. Nairobi: Public
Financial Management Reform Secretariat.
Marginson, D.E.W. (2002), Management control systems and their effects on strategy formation
at middle management levels: evidence from a UK organisation, Strategic Management
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Mugenda,

O.M.

& Mugenda, A.G.

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qualitative approaches.2

(1999).

Research methods:

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OECD;. (2007). Integrity in Public Procurement, Good Practice From A to Z. Organisation for
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Orodho, A.J (2003). Essentials of Educations and Social Science Research Method. Nairobi:
Masola Publishers.
Oxford Policy Management Limited;. (2011). Effective Public Financial Management.

41

Rapa, A. and Kauffman, D (2005) Strategy implementation - an insurmountable obstacle?

Handbook of Business Strategy, Volume 6, Number 1, pp 141-146
Rodin-Brown, E. (2008). Intergrated Financial Management Information Systems: a Practical
Guide edited by Steve Rozer and Marck Gallagher. United States Agency for
International Development. Development Alternatives, Inc. Under the Fiscal Reform
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The World Bank. (2013). The World Bank website. Retrieved June 9, 2015, from
http://go.worldbank. org/M 1JHE0Z280 USAID (2008). IFMIS A Practical Guide.
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Wang, R. Y. & W. Y. Chung (2005). Redefining the Scope and Focus of Information Quality
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York.

42

APPENDICES
APPENDIX 1: QUESTIONNAIRE
Dear respondent,
I LAWRENCE WAKAMORI WAMBU, student of Kenya Methodist University pursuing a
degree of Bachelor of Business Administration is carrying out a research study on FACTORS
THAT AFFECT THE IMPLEMENTATION OF IFMIS IN THE PUBLIC SECTOR. Please
help to fill the questionnaire, the information you will give will be used purely for academic
purposes

and will be treated with high degree of confidentiality, you are therefore requested to

answer the questions fully and honestly.

Thank you for assistance

Instructions: Tick or Write in the space provided

SECTION A

1. Highest Level of Education attained:

a. Below O Level [ ] b. Secondary [ ] c. Diploma [ ] d.
Degree [ ] e. Postgraduate [ ]
2. Gender:
a. Female [ ] b. Male [ ]
3. Age in years:
a. Below 25 years [ ] b. 25-30 years [ ] c. 36-40 years [ ]
d. 40-45 years [ ] e. Above 45 years [ ]
4. How long have you worked for the National Government?
5. Which department do you work in this organization?
43

Finance/Budget
Accounts

[
[

Procurement/ Supply Chain Management

Others (specify).........................................
SECTION B
Instructions: Comment the statement below by ticking the correct statement where
necessary.
To what extent does your organization use the following IFMIS features/modules?
(On the scale of 1-5, indicate 1-very little; 2-little; 3-moderate; 4-large; 5-very large)

FEATURES/MODULES

The Public Sector Budgeting

Purchase Ordering
Accounts Payable
Accounts Receivable
General Ledger (GL)
Cash Management (CM)
Analytical tools (Financial Analyzer and the
Financial Statements Generator)

SECTION C
(On the scale of 1-5, indicate 1-very little; 2-little; 3-moderate; 4-large; 5-very large)

44

CAPACITY BUILDING

Have you been trained on use of IFMIS?

Do you have training materials for IFMIS?
Have you been informed how IFMIS will affect
your current work practices?
(On the scale of 1-5, indicate 1-very little; 2-little; 3-moderate; 4-large; 5-very large)

EMPLOYEE
COMMITMENT
I feel a sense ownership to the implementation

of IFMIS
I have been involved in all the phases of the
IFMIS
implementation process
I am willing to do more than my job
description requires to ensure the success of
IFMIS

(On the scale of 1-5, indicate 1-very little; 2-little; 3-moderate; 4-large; 5-very large)

TOP MANAGEMENT
SUPPORT
Top
management considers the adoption of the

IFMIS applications as strategically important.

Top management has allocated adequate
financial resources for the adoption of IFMIS
The top management has an open attitude
toward technological changes
Our organization provides supports for
employees to learn technology

Which other factors in your opinion affect the implementation of IFMIS

45

Suggest other ways through which IFMIS implementation can be enhanced

APPENDIX II: TIME SCHEDULE

ACTIVITY/DATE

PROPOSAL

PROPOSAL

DATA

REPORT

REPORT

WRITING

PRESENTATION

COLLECTION

WRITING

SUBMISSION

SEP-OCT 2015

NOVEMBER 2015

NOVEMBER 2016

DECEMBER 2016

DECEMBER 2016

46

APPENDIX III: RESEARCH BUDGET

ITEM
Proposal Preparation

DESCRIPTION
Printing Of 3 Proposals @ 400

COST(KSHS)
1,200

3 Copies Proposal Binding@ 50

150

Travelling To Gather Information

1,350
12,000

Data Analysis And Internet

2,000

Project Writing And

Printing Of 3 Copies Of Project @ 500

14,000
1,500

Submission

3 Copies Project Binding@ 50

150

TOTAL
10% Miscellaneous
GRAND TOTAL

1,650
17,000
1,700
18,700

Data Collection

47