DETERMINATION OF FINANCIAL RESOURCE LEAKAGE AND ITS IMPACT ON VALUE DELIVERY IN SECONDARY SCHOOLS: A CASE STUDY OF NAKURU COUNTY, KENYA

Abstract

This study investigated financial resource leakage and its repercussions on value delivery in secondary schools within Nakuru County. Specific objectives include determining the extent of resource leakage and its relationship with value delivery. The study was informed by parents, in different Counties, complaining of being fleeced by school administration. It intended to address the problem of whether there is any relationship between financial resources leakage and value delivery in secondary schools in Nakuru County. The null hypothesis posits no resource leakage and no relationship between resource leakage and value delivery in Nakuru County's secondary schools. It employed a survey-based methodology where both quantitative and qualitative surveys were conducted to scrutinize governance, accounting controls, and resource leakage. The study targeted all 326 registered secondary schools in the County. Stratified sampling selected 33 schools proportionally across ownership and district, with a 20% buffer to address anticipated non-response. Various stakeholders, including head teachers, department heads, accountants, teachers, students, and suppliers, participated through structured questionnaires. Statistical analysis using Spearman's coefficient of correlation revealed notable findings. Price leakage analysis demonstrated a non-significant negative correlation with improvement index (Spearman's rho, correlation coefficient = -0.390, p = 0.059), indicating higher price leakage associated with lower performance improvement. Perceived leakage displayed a significant negative correlation with improvement index (Spearman's rho, correlation coefficient = -0.418, p = 0.059), indicating higher perceived leakage associated with lower value delivery. Recommendations emphasize the implementation of effective financial controls and accountability measures to optimize resource utilization and enhance educational outcomes.