Strategy Implementation and Performance of Kenya Revenue Authority
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Date
2018-09
Authors
Obiero, James Ombui
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
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.
Description
A Research Project Submitted to the School of Business in Partial Fulfilment of the Requirement for the Award of the Degree of Master in Business Administration (Strategic
Management), Kenyatta University