Investigating Principals' Competencies in Budgeting, Procurement, Internal Financial Control, and Financial Reporting in Kenyan Secondary Schools

This study investigated principals’ budgeting, procurement, internal financial control and financial reporting competencies as predictors of performance of selected financial management roles in public secondary schools in Kajiado County, Kenya. Underpinned by agency theory as a theoretical framework, the study employed a quantitative methodology, utilising a correlational research design and questionnaires to collect data from principals and bursars. It used a multistage sampling technique to select a sample of 115 public secondary school principals and 111 school bursars. The findings and conclusions from the regression analysis are that the principals’ financial reporting competencies (33.1%) were the major predictor of their effectiveness in performing selected financial management roles, followed by principals’ competencies in procurement (32%), internal financial control (24.4%), and finally, budgeting competencies (11.2%). This study further concluded that the principals' effective performance of selected financial management roles was explained by 86.3% of their budgeting, procurement, internal financial control and financial reporting competencies in Kajiado County. The study also concludes that other aspects of financial management, which were not studied, contributed to 13.7%. This study recommends that the MoE and other relevant agencies train, mentor and coach principals on identified competency and skills gaps and investigate other factors contributing to principals’ ineffectiveness in financial management roles.