1. Tax Administration

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Browsing 1. Tax Administration by Author "Adhiambo, Alex Otieno"

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    Factors influencing revenue collection by Kenya Revenue Authority in Mombasa County
    (KESRA/JKUAT - Unpublished research project, 2020) Adhiambo, Alex Otieno
    Revenue collection is an important role of the government. KRA being the agent for revenue collection plays the key role of administering the various laws relating to tax. There has been a recorded increase in revenue growth over the years. For instance, the exchequer revenue collected by Kenya Revenue Authority has grown from KES 759.511 billion in the 2012/13 financial year to KES 1.474 trillion in the 2018/19 financial year. This represents a percentage growth of 94.16%. However, Kenya Revenue Authority still faces challenges in meeting the set revenue targets. This calls for the need to look at the factors which influence the revenue growth. The objective of this study was to establish factors influencing revenue collection by the Kenya Revenue Authority in Mombasa County. These included; technology, economic and internal control factors. Three theories were explored in the research; Ability to Pay Theory, Agency Theory and the Rational Expectations Theory of Technology Adoption. The target population was 588 Kenya Revenue Authority Domestic Taxes Department staff based at the Southern Region headquarters, Mombasa. From the population, a sample size of 85 staff was identified through an adoption of the Slovin’s Formula. The researcher employed a descriptive research design and the instruments for data collection were questionnaires. Data was analyzed using SPSS v25 and Microsoft office while Regression analysis, Correlation, descriptive statistics, were used to present the data results and findings. To test the validity of the research instruments, a pilot study were conducted by administering nine questionnaires. The study findings showed that there is a positive and statistically significant relationship between technology, economic factors and internal controls on revenue collection. In conclusion, the study established that technology, economic factors and internal controls indeed influences revenue collection by the Kenya Revenue Authority in Mombasa County. Based on the findings of the study, the researcher recommends, financial resources should be set aside and doubled in the ICT department in order to increase the integration and implementation of ICT projects in KRA. Further it recommended that an effective and operational internal control system to ensure greater control of the revenue collected by KRA and continuous improvement through implementation of suggestions and recommendations from the internal audit report. There is need to conduct further research that would investigate interaction of other variables that may influence revenue collection by KRA like staff competence working environment, among others. A replication of these study should be carried out but these time using a larger sample, more time should be allocated to the same and a combination of more than one of data collecting instrument should be used like interview and focus group discussions these will help to counter check the information provided.
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