Abstract:
The purpose of this study was to investigate the factors that influence utilization of
funds in Kenyan secondary school and its effects on the role of value based leadership
in Wareng sub county -Uasin Gishu County. Among its specific objectives were:
assess the role of value based leadership on effective utilization of school funds, fmd
out the effect of school characteristics on effective utilization of school funds,
investigate the effect of school policy on effective utilization of school funds and to
establish the effects of Board of Governors chairperson (B.OG),parents teachers
association chairperson (p.T.A) and head of department chairperson (H.O.D)characteristics on effective utilization of school funds. The study was based
on value based leadership theory that was propounded by Chen, J. (2009). The
conceptual framework assumes that head teachers effectiveness in financial
management was determined by personal, institutional, and moral factors that guide
schools. A descriptive survey design was adopted. A sample size of 49 respondents
comprising 12 head teachers, 12 PTA chairpersons, 12 H.O.D, 12 BOG chairpersons
and 1 Auditor were drawn from 12 public secondary schools to participate in the
study through, purposive and stratified simple random sampling techniques. Data was
collected using questionnaires and interview schedules for different categories. The
study analyzed data using statistical package for social sciences (SPSS). Tables were
used to present data. Based on the results or the data analysis, the study established
that most of the head teachers were experienced in administrative position, had
knowledge and basic skills in financial accounting management. This shows
indispensable need to prudently manage school financial resources. It was further
revealed that majority head teachers supported that KESI workshops were very good
in financial management. The study also revealed that most head teachers follow the
rules of school budgets and record transactions often as they occur. It was further
revealed by the study that PTA does a good job of evaluating the performances of
head teachers /board of governors measuring results against effectiveness. Moreover,
the study also indicated that, there is a productive working relationship between the
BOG,PTA and the head teacher on funds utilization (characterized by good
communication and mutual respect). That school organization resource are used
efficiently (good value for money spent).This study is significant in that, understanding the determinants of effective utilization will therefore be of value to educational management at institutional and policy making levels as well as other stakeholders interested in effective financial management for institutional and education sector development. The study therefore recommends that a comprehensive in service training be establish in order to empower the management with more relevant knowledge through information technology application on financial management. In addition close monitoring and evaluation be done in order to minimize chances of misappropriation of funds