INFLUENCE OF INSTITUTIONAL CAPACITY ON REVENUE ENHANCEMENT IN DEVOLVED GOVERNMENTS IN KENYA
Abstract
Revenue enhancement has been a challenge to the decentralized units since the introduction of the county governments in Kenya. This study was an attempt to evaluate the role that institutional capacity plays in the reinforcement of the county revenue collection ecosystem. The study aimed to understand and aid in the design of an effective revenue mobilization strategy informed by existing best practices. The study topic was to examine the influence of institutional capacity on revenue enhancement in the devolved governments. The research applied the correlation research design. The study sample was drawn from a representation of the present 47 counties in Kenya. The study sampled 5 counties representing 10% of the counties using a sample size of 402 respondents. Primary data was collected by the use of structured questionnaires. The collected data was analysed using Statistical Package for Social Sciences (SPSS) version 22. The study results showed that counties are striving to have in place adequate institutional capacity for revenue collection and strengthening of the existing institutions through automation as a means to increase revenue collection. The study recommended that County Government should majorly focus ON enhancing the institutions and make them have powers in ensuring efficient revenue collection and enhancement. The study then suggests further research on the existing integrated financial management systems as implemented and adopted by the county government to guide revenue collection since it does address the management issues that come with local revenue collections against institutional set standards for revenue collection modules.
Key Words: Institutional capacity, Revenue enhancement, Devolved governments and Kenya
CITATION: Oduol, W., Juma, D., & Onyango, J. (2022). Influence of institutional capacity on revenue enhancement in devolved governments in Kenya. The Strategic Journal of Business & Change Management, 9 (4), 1187 – 1202.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2477
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