Influence of Budgetary Control System on Financial Performance of ALMASI Beverages Group Limited, Kenya

Paul Kipkoech Chircir, Robert Silikhe Simiyu


The purpose of this study was to examine the influence of budgetary control processes on financial performance of Almasi Beverages Group Ltd, Kenya. The study was guided by four objectives which formed the independent variables covering planning; human factors; resource availability, monitoring and evaluation processes and how they influence financial performance of the group. The study was conducted in three Coca-Cola bottling companies in Kenya under the umbrella of Almasi Beverages Group Limited. The respondents for the study were departmental heads and supervisors numbering 126. We utilised concurrent triangulation research design. The HODs were selected through purposive sampling methods while the supervisors were selected through stratified random sampling method. We used questionnaires and interview guide to collect primary information. Secondary information was obtained from document analysis of the groups’ financial statements. The instruments were validated and tested for reliability prior to field administration. Descriptive statistics was used as a tool of analysis while inferential statistics (Karl Pearson correlation) was used to test hypothesis at 0.01 and 0.05 significance levels. MLR statistics showed that 18.1% of change in financial performance of ABGL was influenced by the four factors studied. Research findings showed that there existed significant influence of the four budgetary control factors; planning (r=0.227), human factors (r=0.369), resource availability (r=0.334) and monitoring and evaluation (r=0.307) on financial performance of ABGL. Out of the four factors, planning was found to have low effect (r=0.227) on financial performance of ABGL compared to human factors. We therefore concluded that the four factors related to budgetary control influenced financial performance of ABGL significantly (p<0.05). This shows that for effective financial performance, ABGL has to ensure that human resources are adequate, trained and adequately involved in all budgetary process.

Keywords: Budgetary control systems; financial performance

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