The purpose of this study was to investigate the influence of internal control on financial stability
of Catholic Institutes in Karen Ward, Lang’ata Sub-County in Nairobi County. The study was
guided by these objectives: To explore the extent to which budgeting affects financial stability of
Catholic institutes in Karen Word Lang’ata Sub-County, Nairobi County; To establish how Cash
management affects financial stability of Catholic institutes in Karen word Lang’ata Sub-County,
Nairobi County; To explore how Book Keeping affect the financial stability of Catholic institutes
in Karen Lang’ata Sub-County, Nairobi County; To determine how auditing affect, the financial
stability of Catholic institutes in Karen Word Lang’ata Sub-County, Nairobi County.The study
was grounded on the Accounting Theory, Modern Theory of Finance and Budgetary Control
Theory. The study adopted descriptive survey design and used questionnaires to collect data from
a sample of 10 Financial Officers drawn from 10 Catholic Institutes in Karen ward, Lang’ata SubCounty, Nairobi County.The study revealed that most of the institutions under study were making
efforts to internally control their finances through preparation of annual financial budgets with the
involvement of all their departments where they were also strictly following their set budgets. Most
of the institutes had systems in place to help them track all their monthly incomes, expenditures
and were also able to determine whether they were making losses or profits on monthly basis. The
study established that most of the institutes were also internally controlling their finances through
the use of cash books to record receipts and payments of money to track and control finances. They
were also operating petty cash books to help them track small expenditures as well as carrying out
bank reconciliations and conducting regular, accurate and timely cash flow analysis and
forecasting as a method of financial control. The study recommended that Catholic institutes
should regularly be conducting both internal and external auditing of their finances to enhance
their financial stability