Vol 5 Issue 3 July 2018-September 2018
Collins Omondi Nundu, Dr. Hesbon N. Otinga
Abstract:Devolved government was introduced through the Kenya constitution 2010, to devolve resources and ensure equitable development throughout the country. As a result county governments are to receive grants from the national government, which they supplement through local taxes such as permit fees, property taxes, license fees, and entertainment fees. Since implementation of the new system of devolved government in 2013, the county governments have not been able to meet there revenue expectations. According to the county budget implementation review report total revenue collected in 2013/4 was 26.3 billion against a target of 54.21 billion, and in 2014/5 collection was 33.85 billion against a reduced target of 50.38 billion, hence the need for this study. The objective of the study was to assess the determinant factors of revenue collection among counties in Kenya. It will be conducted in the county government of Kisumu. The Focus of this research was on government policy and assessed how far these factors determine revenue collection in the county. The theoretical model for the study took into consideration tax theories such as; Cost of service theory, where revenue is matched with expenses; Ability to pay theory, where taxation is based on one's taxable capacity; Benefits received theory, where taxation is based on the amount 'of benefits received and finally the public expenditure theory, where we expect revenues to increase in developing societies; A descriptive design was adopted and the target population was all the 133 staff working in the finance departments; the study used census to collect data from respondents. Data was collected using structured questionnaires. Data was analyzed using SPSS and multiple regression analysis showed that information technology, staff training, fiscal policy and internal control significantly influence revenue management in Kisumu County Government. The study concluded that enacting of feasible tax polices both at county and national government level can significant increase county governments revenue. The study recommends that one, top management officers in the county revenue management committees should professionally procure and install secure, reliable and cost effective electronic revenue management systems so as to check revenue collection losses and systemic issues so as to buffer county revenue index; two, revenue officers in county governments should frequently undergo training and benchmarks in automated secure revenue collection systems and ethical tax management practices so as to win trust from tax payers which will consequently boost county government revenue and three, there should be quality control systems meant for regular checks and balances in county government revenue control systems so as to improve county revenue management. The study recommend a further study to be done targeting tax payers, so as to assess perceptions of county government revenue management in the eyes of tax payers in the respective counties.
Keywords:Devolved government, county budget, government policy, target population, quality control systems.
Title:Determinants of Effective Revenue Management in the County Government of Kisumu, Kenya
Author:Collins Omondi Nundu, Dr. Hesbon N. Otinga
ISSN 2349-7831
International Journal of Recent Research in Social Sciences and Humanities (IJRRSSH)
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