This study aims at determining the influence of county cash management on household effects in Kenya. This is a qualitative research that has utilized both primary and secondary data from county governments and the National Treasury respectively. The sample has been developed from the Kenya National Bureau of Statistics list of households in Kenya. The result indicates that effective cash management would enhance household welfare, leakages and lack of prioritization among others notwithstanding. The study concludes that there is need to enhance oversight of the treasury management across governments. The capacity of treasury managers should also be improved to secure fiscal discipline.
The study is in line with Oates (1951), where fiscal decentralization is explained as the delegation of income and consumption powers from the central government to the devolved units, both local and national levels within the framework of decentralization. Fiscal decentralization is considered to be the panacea in eradicating poverty, particularly in developing countries. This review entails the assessment of the influence of fiscal asymmetric decentralization on household effects. Specifically, the review looks at the interaction between budget efficacy, fiscal policy, and county treasury management and household effects. Despite the fact that scholarly work has been conducted on all the concepts, arguably inadequate attention has been given to the influence of fiscal asymmetric decentralization on household effects. Furthermore, scanty information was found on revenue disparity or financial planning attributes. In addition, not much has been done on fiscal control by subnational governments and self-fiscal reliance as counties continue to rely on funding from the national governments although counties have considerable potential to generate their own revenue. The challenges of comprehensive results are observed, and the study concludes that it appears critical to focus more on analysis that will establish the link of control theory and practice, which will need more firm and integrative study process.
Fiscal asymmetric decentralization is seen as the panacea in solving persistent income inequalities facing developing economies. Despite efforts to finance County governments, about 42% of Kenyan’s 47.6 million people still live below the poverty level. This study evaluates the influence of County fiscal autonomy on household effects in Kenya. Both primary and secondary data, collected from households in 47 county governments and the Commission on Revenue Allocation, respectively. A Sample of 4,813 households was drawn from 96,251 lists of households developed by Kenya National Bureau of Statistics. Cochran's correction formula was used. The result finds an insignificant negative correlation between county fiscal autonomy and household effects in Kenya. Further studies are recommended with diverse indicators. Findings in this paper are generalizable and a point of reference for policymakers in Kenya.
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