Effect of tracking systems on revenue collection performance in Nairobi City County Government

Abstract

Revenue collection is a vital function of local governments, as it enables them to finance their operations and deliver public services. Nairobi county has been struggling with low revenue collection performance due to various factors, such as manual processes, corruption, and non-compliance. This has led to the introduction of tracking systems. This study therefore investigated the effect of tracking systems on revenue collection performance in Nairobi City County. The research specifically focused on the effectiveness and efficiency of the system, the reliability and usability, system compliance and technical capabilities within the county. The study used mixed research methodology and works on a sample size of 80 respondents drawn from Nairobi County Government revenue managers. In addition, the study used a semi-questionnaire to collect data, and SPSS to analyze the data. The research applied content, descriptive and inferential analysis. Findings from the regression analysis revealed that there was a positive and significant relationship between tracking systems and the revenue collection performance in Nairobi City County. Further the results confirmed that there was a positive and significant moderating effect of technical capabilities on the relationship between tracking systems and the revenue performance in Nairobi City County. Findings on the first objective revealed a positive and significant effect of effectiveness and efficiency of tracking systems on revenue collection performance in Nairobi City County. Findings on the second objective established there was a positive and significant effect of compliance of tracking systems on revenue collection performance in Nairobi City County. The analysis of the third objective revealed that there was a negative and significant effect of reliability and usability of tracking systems on revenue collection performance in Nairobi City County. Finally, the findings showed an insignificant effect of technical capabilities on the revenue collection performance in Nairobi City County. The study recommends investing in upgrading tracking systems to improve transaction processing time and reduce administrative costs further. The study also recommends that Kenya Revenue Authority should prioritize efforts to improve system uptime and availability, including investing in infrastructure upgrades and redundancy measures.

Keywords: Revenue, Tracking Systems, Revenue collection, Efficiency, Effectiveness, Compliance, Reliability, Usability