Effect of Public Financial Management Practices on County Governments Financial Distress in Kenya

Abstract

The study sought to establish the effect of public financial management practices on  county governments financial distress, this study adopted causal research design where regression analysis was used to determine the cause and effect relationship. Findings indicated that financial planning affects financial distress in the county and also internal control had an effect on the county governments financial distress the study concluded that counties planned for their tax and the plans affected the financial distress in the country. This is attributed to the fact the counties’ plan for tax measured their ability to meet their financial obligation since the funds gotten from the tax enable the counties to be able to meet their financial obligations.

Key words: Financial distress, Financial management practices, internal control