The Influence of Internal Controls and Governance Processes in Public Sector: A Study of National Treasury in the Northrift, Kenya

Abstract

Weak governance processes in Kenya’s public institutions could stem from the weakness of internal controls eventually resulting in loss of public financial resources. While weak internal controls aid fraud in these institutions, adequate controls help mitigate risks and minimize the impacts of imminent threats. This article sought to assess the role of internal controls in enhancing governance processes at the National Treasury in the North Rift, Kenya. The study was grounded on systems theory to explore the relationship between internal controls and governance processes. A descriptive research design targeted 25 internal auditors in Kenya's North Rift region. A census approach was used to gather data from 23 participants. Hypothesis testing was performed, and qualitative data was analyzed based on the study's variables and the results presented through tables. Respondents strongly agreed that internal audit activities have enhanced governance process outcomes in this region. The study concluded that internal controls, significantly influence governance processes in the National Treasury offices in Kenya's North Rift region. The paper recommends that ministries and departments should institute adequate internal controls to enhance process efficiency. Future research could explore other regions and public sector entities in Kenya to validate these findings and provide broader insights into the role of internal auditing in public governance.