Workforce Retention Strategies and Performance of Kenya Revenue Authority Employees
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Date
2025-11
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Kenyatta University
Abstract
Workforce retention problems at Kenya Revenue Authority (KRA) have impeded employee performance. KRA, a key agency charged with revenue collection, has a mandate that is critical to the nation's development, yet retaining skilled personnel proves a challenge that could impact its efficiency in achieving revenue targets. As recent statistics show, KRA has had a turnover rate of almost 12% annually, affecting overall performance and increasing recruitment and training expenses. Therefore, the aim of the study was to fill in these gaps by investigating how career growth, recognition, benefits, and organizational culture impact employee performance of KRA. Thus, the study provided an exhaustive understanding of retention strategies within the context of a government agency. Herzberg's Two-Factor Theory, developed by Frederick Herzberg in 1959 and Goal Setting Theory, expounded on by Edwin Locke in the 1960s, will anchor this study. A descriptive research design will be adopted for this study. The study targeted 300 senior management staff, 1,200 middle management staff, and 5,000 operational employees. The sample size, calculated using Yamane's formula, was 376 respondents. This study developed structured questionnaires and interview guides as data collection instruments. The study data was analyzed using both descriptive and inferential statistics, evaluating the relationship between the study variables. Descriptive statistics summarized the demographics and characteristics of the respondents. Inferential statistics assisted in making conclusions regarding the relationships between independent variables {career growth opportunities, employee recognition, employee benefits, and organization culture} and the dependent variable of employee performance. The findings showed that career growth opportunities positively influence performance; employees are motivated by the prospect of clear promotion paths, professional development programs, and mentoring. The study has also established that recognition is one of the key motivation factors affecting productivity. When employees feel appreciated and recognized for their contribution, they tend to perform better and show greater levels of engagement. The study further considered that employee benefits were found to influence performance through job satisfaction and organizational commitment. The results demonstrated that a positive culture promoting teamwork, innovation, and open communication strongly supports employee performance. The study recommended that the Authority should consider technology-infused career development programs designed to link accessibility promotion growth and career opportunities with individual areas of interest. Knowledge programs may be expanded to incorporate peer-to-peer recognition systems and real-time digital acknowledgment platforms. KRA may want to consider setting in place some additional wellness programs such as mental health support and childcare services, which were identified by the employees as lacking.
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 Arts in Public Policy and Administration of Kenyatta University. November 2025
Supervisor
Weldon Kibet Ng’eno