Influence of Budgetary Process on Performance of Non- Governmental Organizations Dealing in Trade in Kenya

Abstract

The purpose of the study was to establish the influence of budgetary process on performance of NGOs dealing in trade in Kenya. The research objectives were to establish the budgetary process of NGOs dealing in trade in Kenya, to determine the performance of NGOs dealing in trade in Kenya and to establish the influence of budgetary process on performance of NGOs dealing in trade in Kenya. The research adopted a descriptive research design, with the focus on 14 NGOs dealing in trade in Kenya. The target population was employees in finance and project departments of the 14 NGOs. Purposive sampling technique was used to select 42 respondents. Primary data was collected using questionnaires and interview guides. The study used Statistical Package for Social Sciences (SPSS) version 22 and descriptive statistics such as frequency and percentages in data analysis. The study found that NGOs had a formal process of setting budgets and the budgetary process in the NGOs was largely effective, that budgeting was done in order to keep track of the expenditures and income, the process involves monitoring, controlling and management of the finances and deciding upon the financial goals according to which the budgets are made, the trading NGOs in Kenya had recorded considerable amount of growth in revenues and that they had increased their budgets in relation to the areas of aid and support to cater for their increasing areas of focus in their activities. The study recommended that there was the need to develop a clear policy on budget processes and that more effort should be made by management of NGOs to sensitize the employees on its importance so as to enhance their understanding. NGOs should diversify their resource needs and design well defined strategies that enable them to acquire the needed resources for their programs and expenses in order to guarantee their survival and continuous rendering of services to the clientele they serve.