Influence of Technology on Financial Impropriety Prevention in Development Corporations within Nairobi City County, Kenya

Abstract

Kenya's economic fraud, despite a decline from 2018, remains a concern for development goals, with digital tools serving as a double-edged sword for detecting and preventing fraud or facilitating it. The general objective of the study was to examine the influence of technology on financial impropriety prevention in development corporations in Nairobi City County. The study focused on addressing the following specific objectives; to analyze the influence of financial planning technologies on financial impropriety in development corporations within Nairobi City County, to evaluate the influence of big data technology on financial impropriety in development corporations within Nairobi City County, and to investigate the influence of accounting technology on the financial impropriety prevention in development corporations within Nairobi City County. The study used a descriptive design, surveying nine development corporations in Nairobi County. A hundred employees were sampled via stratified sampling from various departments. Data were gathered using structured questionnaires and analyzed with SPSS 24.0 using descriptive, correlation, and regression analyses. Results were displayed in tables and figures. Descriptive statistics on influence of financial planning technology revealed that most of the development corporations’ financial management had user-friendly interfaces that promoted transparency and reduced the potential for financial impropriety . Correlation analysis indicated a statistically significant strong and positive relationship between financial planning technology and financial impropriety prevention in development corporations . Linear regression analysis showed that 53.6% of the variability in financial impropriety prevention was explained by financial planning technology, which statistically and significantly influenced financial impropriety prevention in development corporations ( Descriptive statistics on influence of big data technology revealed that predictive analytics optimizes financial decision-making by providing insights into future trends, reducing impropriety due to uninformed decisions . Correlation analysis indicated a statistically significant moderate and positive relationship between big data technology and financial impropriety prevention in development corporations . Linear regression analysis showed that 38.9% of the variability in financial impropriety prevention was explained by big data technology, which statistically and significantly influenced financial impropriety prevention in development corporations ( . Descriptive statistics on influence of accounting technology revealed that most of the development corporations’ general ledger software enabled accurate and timely financial reporting. Correlation analysis indicated a statistically significant strong and positive relationship between accounting technology and financial impropriety prevention in development corporations. Linear regression analysis showed that 53.6% of the variability in financial impropriety prevention was explained by accounting technology, which statistically and significantly influenced financial impropriety prevention in development corporations ( . On the first research objective, the study concludes that financial planning technologies, such as FMS and ERP systems, can decrease the risk of financial wrongdoing in organizations by enhancing transparency, accountability, and automation. On the second research objective, the study concludes that predictive analytics decision trees are the most effective tool for improving financial reporting accuracy and minimizing impropriety. Lastly, the study concludes that using accounting technology like general ledger software, budgeting and forecasting software, and accounts payable and receivable software can considerably decrease the potential for financial wrongdoing, enhance accuracy, efficiency, and compliance in financial transactions, and foster communication and collaboration among accounting personnel. To prevent financial improprieties, organizations should prioritize employee training and risk management. This includes investing in effective training programs and proactive measures, such as predictive analytics and security measures for financial data. Ongoing training on ethics and analytics should also be provided, along with disaster recovery features in cloud computing. Accounting technology should be used, with regular updates and support to reduce the risk of financial impropriety and improve efficiency. Future research should explore the impact of technology on financial decision-making and long-term performance in development corporations.