The Impacts of economic activities on county government revenue in Kenya

Abstract

The purpose of this study is to establish the relationship between economic activities within county governments and revenue amounts collected by the county governments and to forecast future revenue. In order to meet the objectives of the study, a simple linear regression model is used to establish the relationship between economic activities within counties and the county government revenue and from the regression a forecast on future revenue capacity is made. The dataset used in the study is of daily revenue collected in Kiambu County for the first half of the year 201 7. The results show that there indeed exists a relationship between economic activities and county government revenue. The forecast shows a downward trend in revenue capacity as the year progresses