3.2020

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Browsing 3.2020 by Author "Imbuga, Brenda Midecha"

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    Effect of Organizational Structure on Tax Revenue Performance in Kenya
    (KESRA/JKUAT - Unpublished research project, 2020) Imbuga, Brenda Midecha
    The KRA management over time has tried to carry out a number of initiatives which include changing its organizational structure so as to improve its efficiency in tax revenue collection. This study sought to determine the effect of organizational structure on tax revenue performance at KRA. The study particularly focused on decentralization, formalization and span of control and their effect on tax revenue performance. The anchoring theories were Ability to pay theory, Adam’s Equity theory and Resource based theory. The study employed a case study research design since only one institution was involved in the study. Primary data was used in the study, and was collected using a structured questionnaire. The study targeted senior managers working at KRA headquarters at Times Towers in Nairobi, which made a total of 316. Using stratified random sampling technique, a sample of 32 respondents was used in the study. Data analysis was carried out using descriptive statistics with the help of SPSS computer software. The statistics generated were descriptive and inferential statistics and was analyzed using correlation and a multiple linear regression. In determining the effects of decentralization on tax revenue performance, the findings of this study was statistically significant at a p value of 0.000 which is less than 0.05 the convectional probability significance level. For the second study objective, which was to determine the effect of formalization on tax revenue performance at KRA, the finding was statistically significant at a p value of 0.004 which is less than 0.05 the convectional probability significance level. Finally, for the third objective of the study which was to determine the effect of span of control on tax revenue performance in Kenya, the finding was also statistically significant at a p value of 0.004 which is less than 0.05 the convectional probability significance level. The study concluded that organization structure affects tax revenue performance in Kenya. Based on the study findings the study recommends that KRA should decentralize its operations from Nairobi to the rest of the country as this will see an increase in the number of registered tax payers thereby expanding the tax base. For future research, the study suggests a study on effect of other variables such as technology on tax revenue performance in Kenya.