• Carolyne Wambui United States International University
  • Dr. Amos Njuguna United States International University


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financial management systems, effectiveness


Purpose: The purpose of the study was to identify the factors affecting the financial management systems effectiveness in Kenyan health oriented civil society organizations.

Materials and methods: The study was conducted through a cross sectional descriptive survey. The target population of the study was 1065 Nongovernmental organizations in Kenya. The accessible population refers to the 606 Nongovernmental organizations located in Nairobi County. A sample of 10% equivalent to 61 Nongovernmental organizations was selected from the Nongovernmental organizations located in Nairobi County. The respondents were financial managers in every selected Nongovernmental organization. Data was collected by use of a questionnaire and was analyzed by use of inferential and descriptive statistics. Descriptive statistics included frequencies and means. Inferential statistics included correlation, regression and ANOVA analysis. The tool for data analysis was the Statistical Package for Social Sciences (SPSS) version 20. The results were presented using tables and pie charts.

Results: The study results indicated that information technology management in Nongovernmental organizations are reliable and flexible enough to support the financial management of the organization. Additional results indicated that Nongovernmental organizations had invested in a management information system which had lowered administrative costs. The usage of IT led to efficient management of processes of budget accounting. The findings imply that information technology has significant positive effect on financial management system.

Recommendations: The study provided recommendations to the NGOs and other organization that ICT development should be maximized fully in the organization especially if the objective is to improve efficiency and financial management systems effectiveness.  Human resource management must be fully functional in a company with continuous training of the staff to ensure up to date competences and increased knowledge in financial management. Further recommendations to the organization is to ensure that financial governance ought to be thorough throughout the company with sound rules and regulations that govern the accounting and financial sector of the organization. This will ensure timely and accurate disclosure of all financial matters regarding the corporation to the regulatory body thus showing the efficiency in financial management systems.


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Author Biographies

Carolyne Wambui, United States International University

Post graduate student

Dr. Amos Njuguna, United States International University

Dean, Chandaria School of Business


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How to Cite

Wambui, C., & Njuguna, D. A. (2017). FACTORS AFFECTING THE FINANCIAL MANAGEMENT SYSTEMS EFFECTIVENESS: A SURVEY OF HEALTH ORIENTED CIVIL SOCIETY ORGANIZATIONS IN KENYA. International Journal of Finance and Accounting, 2(2), 63–84. https://doi.org/10.47604/ijfa.298