Financial Management Practices and the Competitiveness of TVET Institutions in Nyeri County

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Edward Mutahi Kahiga
Tarsilla Kibaara
Paul Maku Gichohi

Abstract

TVETs play a crucial role in producing a multi-skilled workforce for the modern labour market. However, their competitiveness has been facing severe financial challenges. As a stop-gap measure, the government of Kenya has developed mechanisms to ensure the competitiveness of TVET institutions by establishing oversight institutions and supporting legal frameworks. Despite these reforms, TVET institutions in Kenya are still less competitive, while issues about imprudent financial management are common. The current study investigated the relationship between financial management practices and the competitiveness of TVET institutions in Nyeri County, to suggest strategies for improvement. The balanced scorecard model informed the study. It employed a mixed-methods approach with a cross-sectional descriptive survey design. The target population comprised 35 principals, 475 department heads and 315 student leaders from 35 TVET institutions in Nyeri County. A sample size of 11 principals, 11 student leaders, and 176 HODs was drawn from 11 TVET institutions. A systematic sampling technique was utilized to select the number of participating TVETs from Nyeri County, while HODS, principals and student leaders were selected purposively from each sampled TVET institute. Instruments used to collect data were questionnaires, interviews, and focus group discussions. The quality of tools for collecting data was ensured by checking reliability and validity. Descriptive statistics and inferential techniques were applied on quantitative data, while themes were generated from qualitative data. The results of the study revealed moderate financial management practices. Moreover, financial accountability and transparency systems were established in most TVETs, but adherence levels to the set financial policies needed to be higher. The study concludes that there is a positive and substantial relationship between financial management practices and the competitiveness of TVETs in Nyeri County. It recommends that TVETs embrace prudent financial planning through diversified income, tightened budget controls, risk mitigation, and staff training in financial management.

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How to Cite
Kahiga, E. M., Kibaara, T., & Gichohi, P. M. (2024). Financial Management Practices and the Competitiveness of TVET Institutions in Nyeri County. International Journal of Professional Practice, 12(1), 93–108. https://doi.org/10.1234/ijpp.v12i1.419
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Author Biographies

Tarsilla Kibaara, Kenya Methodist University

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Paul Maku Gichohi, Kenya Methodist University

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