Participatory Budgeting and Performance of National Government Constituency Development Fund Projects: A Case of Molo Constituency, Kenya

Abstract

Participatory budgeting within integrated financial planning is crucial for enhancing efficiency in government-funded projects. However, NGCDF projects face challenges including delays, cost overruns, stalled developments, poor quality, and local community dissatisfaction, revealing a gap between project goals and actual outcomes, which raises significant concerns about overall effectiveness and performance at the constituency level. The current study assessed the effect of participatory budgeting on performance of NGCDF projects in Molo Constituency, Kenya. The study was anchored on Musgrave theory of public finance. A descriptive research design was applied. The target population for the present study was the 39 Ongoing NGCDF projects in Molo Constituency. The researcher involved the project manager from each project, 3 project management committee (PMC) members, and 10 NGCDF committee members, who forms the unit of observation. Therefore, the total population of interest was 127, comprising 117 committee (PMC) members, and 10 NGCDF committee members. Data collection was done using questionnaire. Both descriptive and inferential statistical methods were employed for data analysis. For inferential analysis, Pearson’s correlation and multiple regression analyses were conducted. The analysis was aided by the Statistical Package for Social Sciences (SPSS). As per the descriptive research findings, the performance of NGCDF projects is affected by the participatory budgeting. The correlation analysis showed that participatory budgeting (r = 0.618**, p = 0.000) had positive and significant relationship with the performance of NGCDF projects. In the regression analysis, the beta coefficient was found to be 0.313 with a t-value of 7.654 and a p-value of 0.000. This result indicates that participatory budgeting had a significant effect on the performance of NGCDF projects. The study concluded that effective participatory budgeting improves project prioritization, accountability, and timely execution, which enhances performance. The study recommended strengthening budget structuring to ensure that NGCDF projects are guided by realistic financial frameworks that align available resources with project priorities. Budgets should be developed based on accurate cost estimates, transparent allocation criteria, and clearly defined timelines. This will enhance overall financial efficiency and performance in NGCDF projects.