BUDGETARY LEAKAGES AND ITS IMPACT ON VALUE DELIVERY IN SECONDARY SCHOOLS: A CASE STUDY OF NAKURU COUNTY, KENYA

Abstract

This study investigated the phenomenon of resource leakage, particularly through budgetary variances, in secondary schools in Nakuru County, Kenya, and its impact on academic performance. The inconclusivity of research in determining the effect of leakage of financial resources informed this study as a problem that needed to be addressed. The problem was further compounded by recent parental complaints on schools overcharging despite government subsidy in Education. Drawing on Agency theory and Contract theory, the research aimed to understand the extent of resource mismanagement and its implications on value delivery. A survey design incorporating both quantitative and qualitative methods was employed, involving a sample of 33 secondary schools. Data analysis revealed significant deviations from allocated budgets, indicating deliberate leakage of resources. Surprisingly, despite expectations of a negative correlation, budgetary variances showed a positive association with KCSE performance, suggesting complex dynamics influenced by fee structures and parental involvement. The findings underscore the need for strengthened oversight mechanisms, improved accountability, and enhanced financial management practices in secondary schools to mitigate resource leakage effectively and ensure optimal value delivery. Further research is recommended to explore the underlying factors driving this relationship and promote proBudget management