Effect of Funds Disbursement Procedures on Implementation of Donor Projects in Homabay County, Kenya

摘要

The Official Development Assistance (ODA) to Kenya excluding debt relief experienced marked variation in donor commitmentsover the last decade with a low of US $ 400 million in 2002 and a high of US $ 1.2 billion in 2007.However, actual disbursement of aid lagged behind, only 63% of 2007 aid commitment was realized hence uncertainty in implementation and eventually stalling. The study was guided by a conceptual framework where independent variable was funds disbursement while dependent variable was project implementation. The validity of the data was conducted through examination by experts. There is delayed receipt of funds by projects of up to 15 months with a positive correlation coefficient of 0.689 at 0.000 significance level between suppliers’ inability to honour contractual obligations and projects incurring cost overruns. Unresolved audit issues result in donors suspending aid and returning huge unspent funds to Treasury yielded a positive correlation coefficient of 0.681 at 0.000 significance level .Provision of staff to man key departments by donors is not a guarantee to completion of projects as scheduled with a negative correlation coefficient of 0.421 at 0.011level of significance. The study contributes to knowledge on disbursement of funds and project implementation in Kenya’s public sector.