The Impact of Budgeting and Budgetary Controls in Micro Finance Institutions

The objective of this study was to examine the impact of budgeting and budgetary controls in micro finance institutions; a case study of Melbond Microfinance. The specific objectives were:

1. To investigate concisely the budgetary control of Melbond Microfinance as a cooperation with the view of determining its efficacy.
2. To establish the relationship between budgetary control and profitability.
3. To find out how budgeting helps in coordinating the activity of various department in the company.
4. To establish the factors affecting budgetary control at Melbond Microfinance.

The study adopted a survey approach of collecting data. The target population of this study consisted of all employees (middle and senior level managers) of Melbond Microfinance. Using purposive sampling technique, the researcher purposively select a sample size of 50 respondents. Having considered the nature and purpose of the research, the researcher deemed it appropriate to employ the use of questionnaires in the collection of the data. Data was processed and analyzed using Statistical Package for Social Sciences (SPSS v.16.0) software and generated into percentages, pie charts, bar charts and tables to give good visual impression and clarity of information.