Determinants Of Revenue Collection In County Governments In Kenya

Abstract

The purposive of this study was to examine the determinants of revenue collection in county governments in Kenya. The objectives of the study were to determine the effect of internal controls on the revenue collection, establish the effect of staff skills and competence on the revenue collection and to assess the effect of technology on revenue collection in county governments in Kenya. The study adopted descriptive research design. The target population was 3,891 finance managers and revenue officers from the 47 counties in Kenya. The study sampled 350 respondents using stratified and simple random sampling methods. The data was collected using questionnaires. The researcher administered questionnaires to the respondents and drop and pick later method was used because the respondents needed time to fill the questionnaires. Both descriptive and inferential statistics were used to analyse the data. The study used correlation and regression analysis to test the relationship between the variables. The study performed diagnostic tests to determine the appropriateness of the data before running the regression analysis. The findings were presented in tables and figures. The study established that the internal control system had a positive significant effect on the revenue collection. The study furthers established that revenue staff skills and competence have significant effect on the revenue collection in the county governments. Finally, the study established that there was a significant effect of technology on the revenue collection. The study therefore concludes that internal control, revenue staff skills and competence and technology have positive and significant effect on the county governments’ revenue collection. The researcher made the following recommendations: the management of the county government should tighten the internal control systems to enhance revenue collection process with the view of increasing revenue collection in the county governments in Kenya; the organization should emphasis employee competence and skills by hiring qualities personnel with relevant revenue collection knowledge and constant training with view of sharpening their skills and competence to maximize revenue collection in the county governments; the county governments should legislate more revenue policies and strengthen enforcement of the policies with the view of enhancing the revenue collection in the county government, and the county governments should adopt more revenue collection systems to enhance the revenue collection in the county government.