Revenue Collection Automation and the Performance of Own Source Revenue in Nyandarua County, Kenya
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Date
2023-07
Authors
Wangari, Laban Muchiri
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Manual or Non-automated revenue collection has been characterized by multiple
malpractices including corruption, misallocation of funds and poor revenue collection in
peneral. In addition, tax collectors and tax players have colluded in the past to evade revenue
collection and break laws pertaining to the collection of revenue among County Governments
in Kenya. Revenue collection at county level improves service delivery by the county
povernment. Automated systems have been proven to be more efficient than the conventional
methods of revenue collection. This survey aimed to explore the effects of revenue collection
automation on the performance of own source revenue collection in Nyandarua County,
Kenya, The study objectives were; to establish the effect of mobile payments on performance
of own source revenue, (o asscss the effect of online response process on 0WI source revenue
collection and to establish the effect of integrated tax management systems on the own source
revenue colleetion in Nyandarua County. The survey is grounded on the Resource Based
View (RBV) Theory and the Transaction Cost Theory. The study targeted 502 employees
working across all departments (Department of Financial Reporting and Accounting, and ICT
Department, Stratified simple random sampling was used to sample 50 respondents while
purposive sampling technique was used to sample 2 directors (Financial Department director
and 1CT direetor). A total of 52 respondents form the sample size. Primary data was gathered
by dispatching questionnaires to the participants while secondary data was acquired from the
{inancial records of the County. The pilot study was conducted among 5 respondents to
enhance validity and reliability of study instruments. In analysis of data, Statistical Package
for Social Science Version 26 was utilized. The inferential and descriptive statistics were
utilized to statistically examine quantitative data, while content analysis was utilized to
statistically evaluate qualitative data. The findings were presented in frequency tables, charts
mean, and standard deviation. The research utilized a multivariate regression model to show
how the factors were correlated. Tables, charts, and graphs were utilized to display the results.
The researcher sought research authorization from Kenyatta university graduate school and
rescarch permit from National Commission for Science, Technology and Innovation.
Moreover, the permission to conducted study was sought from County Government of
Nyandaura, From the findings, it was established that at the 95% level of significance, a R
squared was 0,862 and an adjusted R squared was 0.849, indicating that automation of
revenue collection jointly accounts for 84.9% of the variation in own source revenue
collection in Nyandarua County. Also, the research established that mobile payments had a
positive significant effect on own source revenue collection in Nyandarua County (B =.538,
p=.005<.05), online response process had a positive significant effect on own source revenue
colleetion in Nyandarua County (B =239, p=042<.05) and finally integration of tax
management systems had a positive significant effect on the own source revenue collection
in Nyandarua County (B =282, p=.019>.05). The research finds that the automation of
revenue collection had positive significant effect on own source revenue collection in
Nyandarua County. The study recommends that County governments should adopt
procedures to automate revenue collection such as embracing mobile payments, establishing
|‘and maintaining online response systems and using integrated tax management systems to
improve performance of own source revenue collection.
Description
A Research Project Submitted to the school of Law, Arts and Social Sciences in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Public Policy and Administration of Kenyatta University, July, 2023
Keywords
Revenue Collection Automation, Performance, Own Source Revenue, Nyandarua County, Kenya