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Abstract
This study sought to establish the relationship between financial planning and financial performance of Nandi county government in Kenya. The study answered the following research questions; what is the relationship between working capital management and financial performance of Nandi county government? What are the relationship betweenbudgetary allocation and the financial performance of Nandi county government? What is the relationship between financial objectives and the financial performance of Nandi county government? How does investment decision by management relate to the financial performance of Nandi county government? This study was guided by the iceberg theory of money management. Other theories reviewed are stakeholder theory, modern portfolio theory and agency Theory. This research used the correlational research design. The study was carried out in Nandi county government. A target population of 80 management staff was drawn and 66 respondents was sampled using stratified and simple random sampling. Data was collected using questionnaires and analyzed using both descriptive and inferential statistical methods. The study provided two types of data analysis, descriptive analysis and inferential analysis. This study found a strong positive relationship between financial planning and financial performance in the county Government of Nandi. The study therefore concludes that sound financial planning by the county government of Nandi lead to a better financial performance as accountability was enhanced through all levels of decision making. The study recommended that awareness was to be created by policy makers to the employees on the importance of the financial planning in business operations. Also the policy makers should be consulting widely on the effective financial plans the government should adopt.