Financial Resource Mobilization and Counties Sustainable Development in Kenya: A Case Study of Tharaka Nithi County Government
DOI:
https://doi.org/10.53819/81018102t5373Abstract
County governments in Kenya are tasked with fourteen constitutional responsibilities, necessitating robust financial resource mobilization beyond national allocations. Despite possessing the potential to generate local revenue, most counties, including Tharaka Nithi, have underperformed due to financial inefficiencies. This study investigated how financial resource mobilization affects sustainable development in Tharaka Nithi County. The objectives included exploring how Own Source Revenue (OSR) can enhance sustainable development, identifying obstacles in financial mobilization and proposing strategic, time-bound solutions. The study was guided by public goods and sustainable development theories. The study employed a mixed-methods approach, utilizing questionnaires and interviews from 100 participants including county officials, national government officers, and citizens. Stratified random and purposive sampling ensured representative and expert input. Diagnostic tests like normality, multicollinearity, and heteroscedasticity confirmed data reliability. Instrument consistency was assessed through Cronbach’s Alpha and test-retest methods, while validity was established through expert reviews and pilot testing. Analysis using Excel and SPSS revealed that financial resource mobilization significantly influences sustainable development. The study found that taxes and levies (β=0.479, p=0.000), grant transfers (β=0.158, p=0.024), public-private partnerships (β=0.277, p=0.003), and income from county enterprises (β=0.147, p=0.034) positively impacted development. These resources support infrastructure, reduce inequality, and promote sustainable practices. Public-private partnerships were especially noted for enhancing infrastructure and service delivery. However, major challenges included bloated public payrolls, ethnic politics, illicit outflows, debt dependency, and corruption. The study recommends enhancing OSR by formalizing the informal sector, streamlining taxation processes and strengthening legal and institutional frameworks to build economic resilience and support long-term development.
Keywords: Financial Resource Mobilization, Sustainable Development, Own Source Revenue, Public-Private Partnerships, County Governance, Revenue Generation
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