Effects of Financial Training on Financial Performance of Schools in Kenya: A Survey of Administrators of Secondary School in Trans-Nzoi County

Abstract

The ever increasing cost of education to Governments and to citizens calls for effective management of school resources by administrators. When the Government of Kenya (GOK) introduced free secondary education, the national budgetary allocation for the program was between Ksh.25 billion and Ksh.39.7 billion in the financial year 2007/08 and this figure was projected to increase to between Ksh.28.3 billion and Ksh.74.3 billion in 2011 due to increasing demand for secondary education (Republic of Kenya, 2009). Despite this increasing cost of education, there is training for school managers to equip them with skills, knowledge and competencies, needed for effective management of school resources (Ogembo, 2005). Selection to such positions is based on seniority in terms of age, experience and academic performance of the teacher. Training is a problem-centered, learner-oriented, and time-bound series of activities designed to strengthen the competencies of employees. Training for school managers enables them to attain the required skills, knowledge and competencies in managing school resources. It also eliminates deficiencies in the background preparation of school managers. In addition, Training keeps school managers abreast of new knowledge in financial management and inculcates a sense of creativity in them. Training in Kenya is provided through organized seminars and workshops by district or Provincial Heads of Association and through Kenya Education Staff Institute (KESI).The ministry of education (MOE) in Kenya expects public school Principals, Heads of Departments (HODs) and School bursars to be trained on: Human resource management (HRM), financial management and other management issues (MOEST,2005). Most public secondary schools in Kenya close earlier than term dates citing lack of food, have huge fees balances, charge extra levies, are heavily indebted to creditors, operate on deficit budgets and heavily depend on parents and the GOK to finance their programs (Ouya& Mwelesi,2011). The Study sought to investigate the effect of training of Principals, HODs and bursars on financial management of Public Secondary Schools in Trans Nzoia County. A descriptive survey design and a quantitative approach was be used on a target population of 36 public secondary schools selected using stratified random sampling and a sample of 108 respondents will be selected randomly from the 36 selected schools. Data was collected using structured questionnaires. The study established that in service financial training had little impact on financial performance of public schools. Finance is the life blood of success of any organization and schools either have no option but to embrace strategic financial management. Knowledge on financial management will enable stakeholders in achieving balanced budgets in schools, attaining low fees balances, proper management of school cash, creditors and, debtors thus reducing school arrears, having effective financial plans developing effective income generating activities.