Internal Control Conditions and their Influence on the Implementation of IFMIS: Evidence from Baringo, Turkana, Makueni, Nairobi and Mombasa Counties in Kenya

Abstract

Kenya adopted the Integrated Financial Management Information System (IFMIS) to strengthen transparency, accountability and efficiency in public financial management at national and county levels. Despite full rollout, county governments continue to record audit queries, pending bills, weak compliance and system circumvention, pointing to weaknesses in internal control conditions. The problem persists partly due to limited county-owned control policies, weak enforcement of procedures, minimal system audits and underuse of IFMIS reports. This study sought to examine the influence of internal control conditions specifically policies, procedures, audits, and reporting on the implementation of IFMIS in Baringo, Turkana, Makueni, Nairobi, and Mombasa counties. The study was grounded in the COSO Internal Control Framework, which provides a structured approach to assessing control environments, risk activities, and monitoring mechanisms in public institutions. The study adopted a constructivist research philosophy, a qualitative approach, and a multiple case study design. The target population comprised senior county officials responsible for IFMIS functions in budgeting, procurement, payments, and payroll. A total of twenty directors formed the study sample, selected through purposive sampling due to their direct involvement in IFMIS operations. Data were collected using key informant interview guides and non-participant observation schedules Data analysis followed a thematic analysis approach, supported by ATLAS.ti software, to convert raw narratives into meaningful codes and sub-themes.  The findings show that all five counties lacked county-specific IFMIS policies and comprehensive internal control frameworks. Reliance on national treasury circulars and system prompts resulted in role ambiguity, inconsistent procedures, and weak accountability. IFMIS audits focused mainly on financial outputs, with limited use of system audit functions. IFMIS-generated reports were rarely produced or shared, weakening feedback, learning, and corrective action. Counties with relatively stronger internal coordination demonstrated better compliance and system use.  The study concludes that IFMIS effectiveness is not a technical failure but an organizational one, deeply contingent upon localized administrative controls. It recommends that County Assemblies enact county-specific IFMIS regulations, institutionalize technical system audits, and establish formal reporting structures to enhance feedback and stakeholder trust.