County Government Financial Expenditures and Local Economic Development in Kenya: A Case of Kisii
Walter Anunda Nyaboga *
School of Business & Economics, Mount Kenya University, Kenya.
Osiemo Kengere
School of Business & Economics, Mount Kigali University, Rwanda.
Malgit Amos Akims
School of Business and Economics, Mount Kigali University, Rwanda School of Law, Arts and Social Sciences, Kenyatta University, Kenya.
*Author to whom correspondence should be addressed.
Abstract
This study examined the relationship between county government financial expenditure and local economic development in Kisii County, Kenya. Although devolution has increased the financial resources allocated to county governments, Kisii County continues to face development challenges, including inadequate infrastructure, limited employment opportunities, and slow economic growth. This raises concerns about whether county financial expenditure translates into meaningful local development. The study evaluated the effect of infrastructure expenditure, examined the influence of education and training expenditure, and assessed the contribution of agribusiness expenditure to local economic development. A descriptive and explanatory research design was adopted using a mixed-methods approach. A sample of 120 respondents was selected from a target population of 170 stakeholders through stratified random sampling using Yamane's formula. Data were collected using structured questionnaires, key informant interviews, and document review. Quantitative data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis in IBM SPSS Version 25, while qualitative data were analysed thematically. The findings showed that county government financial expenditure had a positive influence on local economic development. Agribusiness expenditure recorded the highest mean score (3.37), followed by education and training expenditure (2.71) and infrastructure expenditure (2.71). The study concluded that the planning, allocation, and management of county financial resources are critical to achieving sustainable local economic development. It recommended strengthening financial accountability through digital technologies, improving project monitoring and evaluation, and ensuring compliance with the policy requiring at least 30% of county budgets to be allocated to development expenditure. Future research should compare expenditure outcomes across different counties in Kenya.
Keywords: County government, financial expenditure, local economic development, infrastructure expenditure, education and training expenditure, agribusiness expenditure, fiscal decentralisation, public financial management, Kisii County, Kenya