TECHNOLOGICAL INFRASTRUCTURE AS A MODERATOR OF THE PUBLIC FINANCIAL MANAGEMENT-OWN-SOURCE REVENUE RELATIONSHIP IN KENYA'S COUNTIES
Biwott Nicholas Kirwa, Prof. Washington Okeyo, Prof. Peter Kithae
Management University of Africa, P.O Box 29677-00100, Nairobi, Kenya
Abstract
This study aimed to examine the moderating effect of technological infrastructure on the relationship between public financial management practices and own-source revenue by county governments in Kenya. The New Public Management theory served as the anchor theory supported by Technology Acceptance Model and Public Choice theory. Utilizing a positivism research paradigm and a descriptive design, the study analyzed the 11 best-performing counties for revenue generation in the 2022/2023 financial year. A sample of 284 county officials was selected through stratified random sampling, with data collected via structured questionnaires. The research revealed that technological infrastructure significantly moderates the relationship between public financial management practices and own-source revenue in Kenya's county governments. The study concludes that public financial management (PFM) practices are strong predictors of own-source revenue (OSR), but their impact is significantly moderated by technological infrastructure: adding technology to the model improves its explanatory power, indicating robust systems amplify PFM’s positive effects on revenue. However, current technological setups appear misaligned with PFM needs, revealing a complex interplay and a performance gap. To optimize revenue outcomes, counties should invest in, assess, and align technological capabilities with revenue-generation goals while simultaneously strengthening PFM practices. The study recommends that county governments prioritize upgrading and integrating technological systems particularly IFMIS and mobile payment platforms and invest in staff training to ensure effective use of these tools. Strengthening technological infrastructure will enhance efficiency and transparency in revenue collection; optimize public financial management, and significantly increase own-source revenue, ultimately supporting better public services and community development.
Keywords: Own-source revenue, Public financial management practices, Technological infrastructure, County governments in Kenya
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EPRA International Journal of Economics, Business and Management Studies (EBMS)
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Published on : 2025-10-11
| Vol | : | 12 |
| Issue | : | 10 |
| Month | : | October |
| Year | : | 2025 |