DETERMINANTS INFLUENCING REVENUE COLLECTION ON THE PERFORMANCE OF KENYA REVENUE AUTHORITY

Purity K. Mburugu

Abstract


In spite of recording remarkable performance results in revenue collection, KRA continues to face major revenue collection challenges that makes the government to lose billions of money annually. The main objective of this study was to analyze determinants influencing revenue collection on the performance of Kenya Revenue Authority. The study specifically aimed to; determine the effect of organization resources; find out the effect of corporate governance practices; assess the effect of Information Communication Technology adoption and establish the effect of tax regulatory framework on revenue collection performance at KRA. The study adopted a descriptive research design and the target population comprised of a total of 262 staff working at the Kenya Revenue Authority head quarter offices in Nairobi. The study adopted a probability sampling design by using a stratified random sampling technique to select a sample size of 126 respondents. The main data collection instruments were the questionnaires containing both open ended and close ended questions with the quantitative section of the instrument utilizing both a nominal and a Likert-type scale format. A pilot study was carried out to test the reliability and validity of the questionnaires. Descriptive statistics data analysis method was applied analyze data aided by Statistical Package for Social Sciences (SPSS) to compute responses frequencies, percentage mean and standard deviation results. Finally Multiple Linear Regression model was employed to establish the significance of the independent variables on the dependent variable. The findings were presented using tables and charts. Findings from the study showed that organization resources, corporate governance, ICT adoption and tax regulatory framework were the key determinants influencing revenue collection performance at Kenya Revenue Authority. The study concluded that that ICT adoption, followed by tax regulatory framework, then organization resources and lastly corporate governance practices determines revenue collection performance. The study recommendations were that; allocation of more human and financial resources in order to strengthen the organization capacity in revenue collection; appointment of board members who are competent and have capability in directing, controlling organization operations; effective implementation and use of automated revenue collection systems and improve on the level of tax regulations enforcement.

Key Words: Revenue Collection, Organization Resources, Corporate Governance, ICT, Regulatory Framework


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