Strategy Implementation and Performance of Kenya Revenue Authority
Obiero, James Ombui
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Public sector entities globally face performance challenges due to bureaucracy, high competition from the private sector, limited capacity technologically and human resource, corruption and poor strategic management. Kenya Revenue Authority is charged with the responsibility of collecting revenue on behalf of the Government of Kenya. After inception in 1995, the Authority exceeded the targeted collections till 1998/1999 financial year when it fell short of meeting the target revenue collection. This trend of declining performance in revenue collection persisted till the 2003/2004 financial year when the Authority recovered and surpassed the revenue collection targets. However in last 5 years the authority has still failed on its revenue collection targets. KRA needs to foster and encourage determination and persistence in the strategic performance. The study sought to find out the major influence that concept of strategy implementation has on the performance of Kenya Revenue Authority. The objectives of the study were to establish effect of resource allocation, performance targets, communication and strategy supervision on performance of Kenya Revenue Authority. The study was based on Resource based view theory ,Mckensy’s 7s theory of strategy implementation and the theory of constraints. The study used descriptive research design and a population of 150 respondents was considered. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 22) and presented through percentages, means, standard deviations and frequencies. In addition, the study conducted a multiple regression analysis to estimate the model for the study. The study had a coefficient of correlation R of 0.869 an indication of strong of correlation between the variables and a coefficient of adjusted R2 was 0.749. The study found out that resource allocation, performance target strategy communication and strategy supervision significantly influenced firm performance of KRA. The study concluded that KRA employees perform their tasks accurately, KRA have information systems to improve the way employees performs their duties, KRA allocates sufficient funds to implement its strategies and have experienced employees in strategy implementation. Performance targets are set with outputs in mind and in terms of revenue collection. Performance targets focus on change in revenue collection and are set in line with customer satisfaction. Clear strategy communication had improved KRA performance, support from senior management had promoted realization of targets at KRA and regular departmental evaluations promote organizational performance at KRA. Senior management provides a strong support fit for strategy implementation, senior management are directly involved in strategy implementation and have direct influence on strategy implementation. The study recommends that KRA ought to allocate sufficient funds to implement its strategies and have experienced employees in strategy implementation. Performance targets ought to focus on change in revenue collection and set in line with customer satisfaction. Regular departmental meetings at KRA ought to be held to share the targets for each employee, senior managers ought to be responsible for ensuring set targets are met and strategies formulated at KRA ought to be clearly communicated across all affected departments and senior management ought to support the implementation of strategies at KRA.