ECONOMIC FACTORS, PUBLIC PARTICIPATION AND BUDGETARY ALLOCATION IN THE NORTH RIFT ECONOMIC BLOC COUNTIES, KENYA

Abstract

This study set out to examine whether economic factors influence budgetary allocation in the North Rift economic bloc counties and to determine the mediating effect of public participation on the relationship between economic factors and budgetary allocation in the North Rift economic bloc counties. The research was anchored on Agency theory, Stakeholders theory and Arnstein’s Ladder of Citizen Participation theory. The study took on the explanatory study design and targeted 10,690 individuals including elected leaders, county budgetary and planning staff, sub location development committee and county ward administrators. The study utilized a sample size of 320. Multistage sampling technique was used to select the respondent. A questionnaire was used to collect data. Both descriptive and inferential statistical analyses were carried out on the quantitative data. The study found that economic factors (β = .903, p = .000<.05) had a significant effect on budgetary allocation. Public participation was also found to significantly mediate the association between economic factors (β=.2706, LL=.2257, UL=.3171) and budgetary allocation. Based on the findings it is concluded that economic factors are an important factor in enhancing budgetary allocation. Also, the association between economic factors and budgetary allocation is significantly hinged on citizen participation. It is recommended that the general public be economically empowered by county governments for effective public participation in the budgetary allocation process.