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The study examined the effect of budgeting on financial performance of the Youth Groups at Kapsaret Sub-County. The study sought to answer the following questions; extent of budgeting by the youth groups at Kapsaret sub-county, factors affecting budgeting implementation and financial performance by the Youth Groups at Kapsaret Sub-county and budgeting effects on financial performance by the youth groups at Kapsaret Sub-county. The research design adopted for this study was Ex post-facto research design, the target population was the 82 youth groups being funded by the various financial institutions and YEDF in Kapsaret Sub-County Stratified sampling technique targeting youth groups managers and treasurers of the youth groups was used, 5 stratums were drawn from Kapsaret sub-county and data collected through simple random sampling technique. questionnaires administered to the target population was the source of primary data, Validity of questionnaires was tested using a pilot study on 6 Youth Groups out of the sampled groups and reliability was tested using the test-re-test method, descriptive statistic was used to analyze quantitative data presented through frequency tables, percentages, mean scores and standard deviation, chi-square was used to test the hypothesis. The study finding on the effect of standardized budgeting on financial performance using  chi-square with the computed X2 value of 0.610 and the P-Value of 0.435,the study established out that there was no evidence of a relationship between standardized budgeting and financial performance yet  on the effect of budgeting on financial performance computed X2 value was16.970 and the P-Value was 0.000, the study established out that there was evidence of a relationship between budgeting and financial performance. The study recommends that there should be effective budget implementation within the various youth groups particularly those funded by the YEDF, more funding should be provided to the youth groups funded by YEDF, more training and seminars to be offered to the youth groups on preparation and implementation of budgets and there should be constant monitoring and evaluation of the youth groups budgets and budgeting system by fund managers over time within the youth groups.  Keywords: Budgeting, Financial Perfomance, Youth Entreprise.

Effect of Budgeting on Financial Perfomance of Youth Groups Funded by Youth Entreprise Fund in Kapsaret Sub-County, Kenya