Effect of Governance on risk Mitigation among County Governments in Kenya A Case of Mombasa and Kilifi County

Abstract

The purpose of the study was to assess the effect of governance on risk mitigation among county governments in Kenya. The study's main goals were to find out how managerial accountability, public involvement, financial reporting, and adherence to the rule of law impact risk mitigation in the county governments of Mombasa and Kilifi. Because of the ease with which information could be obtained, the research was carried out in the departments of the Mombasa and Kilifi County governments. The Modern Portfolio Theory, Agency Theory, and Risk Mitigation Theory were all used to inform the research. The research design used in this study was a descriptive cross-sectional one. The target demographic consisted of 85 senior staff members County Executive Committee members, Chief Officers and Directors working in 11 departments throughout Mombasa and Kilifi County governments. The sample size for the research was determined by the use of a census sampling approach. Primary and secondary data were used in the investigation. Researchers also visited Mombasa and Kilifi County governments before delivering surveys in order to get formal authorization to conduct the study for academic reasons solely from the academic office of Kenya Methodist University before administering the questionnaires. Descriptive statistics, such as frequency distributions, means, modes, and standard deviations, were used to compile and analyze the data. In order to guarantee that the information was accurate, detailed, and consistent, it was sifted and changed. The data was organized and recorded in accordance with the study's objectives and research questions, and a range of statistics were obtained. All four independent variables (management accountability P=0.000, public participation 0.006, financial reporting 0.000, and compliance with the rule of law 0.019) had a P value less than the threshold level of significance of 0.05, indicating a significant relationship between governance and risk mitigation in the county governments. Risk identification and mitigation are critical in determining the financial success of county governments in terms of income and expenditure, according to the results of the study. In order to reduce the impact of risks on the organization, they must be mitigated as soon as they are discovered. According to international accounting standards, financial reporting by county governments is standardized to increase accountability and transparency by lowering the complexity of present financial reporting and enhancing the value of financial information for stakeholders and consumers. County government executives, according to the findings of the research, should develop and convey to their staff clear rules and processes for creating, implementing, and modifying conflict-of-interest policies at the appropriate levels in the public sector. It is also necessary for county leadership to establish protocols for sharing and debating financial reports and audit reports with members of the public and other stakeholders in the running of the county.