ABSTRACT
Counties in Kenya have adequate revenue based in financing their current services, but the collection levels are often low. Thus the counties are striving to re–engineer strategies towards improvement of revenue collections since it is their mandate to offer quality and timely service delivery to the residents and they cannot proceed well without enough finances to run crucial activities. The study therefore sought to investigate Information Communication Technology considerations and revenue collection in Nairobi City County government, Kenya. The study was guided by specific objectives such as the Information Communication Technology policies, Employee’s perception and financial allocation on revenue collection. The theories which were used to support the study were Unified Theory of Acceptance and use of Technology, Technology, Organization and Environment and Technology Acceptance Model. The study used a target population of 115 and a sample size of 35 respondents working in 8 sectors/departments in Nairobi City County government and that constituted 76.1 percent of the sample population. The data collection procedure which were used was questionnaires by the use of drop and pick method. Questionnaires had both close ended questions and matrix questions with Likert scale of 0-4. The quantitative data was analyzed using descriptive and inferential statistics through the use of application software called Statistical Package for Social Sciences (SPSS version
16) and information was presented using tables, charts and graphs. The study came out with findings, summary, conclusion and recommendations. The study concluded that, Information Communication Technology policies on revenue collection, Employee’s perception on revenue collection and financial allocation on revenue collection all were significant on Revenue collection since the F value was found to be 71 percent with 95 percent level of confidence. Thus 29 percent are other factors which affect revenue collection. Therefore, the study recommended that county governments in Kenya should make the ICT policies on revenue collection awareness, training employees on the use of ICT on revenue collections and proper mechanism of funds allocation for revenue collections policies so as to handle technological changes so as to attain proper revenue collections.
CHAPTER ONE: INTRODUCTION
Background of the Study
Information Communication Technology (ICT) is growing fastest in the world today. Information Communication Technology adoption for running daily administrative and business transactions has made organizations; small, medium and large business enterprises to use it as an enabler tool for managing their daily activities and making work easier. The perceived benefits and usefulness of Information Communication Technology has led to the adoption of Information Technology systems in many organizations both private and public Al-mamary, Shamsuddin, and Aziati, (2014). Information Communication Technology on revenue collection through Electronic tax management applications started in United State of America, and then spread to the developing nations (Muthama, 2013). Value Added Tax revenue (VAT) collection in India has been boosted through the use of ICT as a tool for collecting revenue. ICT adoption addresses the loopholes and seal the leakages of corruption in revenue collection and thus it is efficient and effective to use. ICT adoption replaces inefficient production on revenue collection Githinji, (2014).
Revenue collection in Kenya has been majorly run by both the Kenya Revenue Authority (KRA) and the county government. The use of the ICT and the manual systems both had been used to collect revenues in Kenya. (Maisiba & Atambo, 2016). The use of ICT on revenue collection in local authorities has boost the revenue collection however the revenue has not been to its optimal peak level of collection due to some hindrances factors which inhibits maximum revenue collection. The study seeks to research on the use of ICT on revenue collection in Nairobi county government. Also Ndunda, Ngahu, and Wanyoike, (2015).
The use of ICT in revenue collection has boost the revenue collection in terms of efficiency, reduce corruption, seal the leakages and increase the amount of revenue collection. However, ICT has not been fully used since there were some inhibitors factors which derails ICT use for revenue collection in the counties (Okiro, 2015). According to Maisiba & Atambo (2016), who took a study on Effect of Electronic- Tax System on the Revenue Collection Efficiency of Kenya Revenue Authority narrowed down to Uasin Gishu county
KRA office and not the county government though both sectors collects revenue. On the other hand (Okiro, 2015) under research on effects of e-payment system on his research reveals that the use of ICT in Nairobi City County government however the research study did not reveals the challenges of the use of ICT on revenue collection in the county government and that opened a gap for research. According to Karimi, (2017) about research on effect of technology and information systems on revenue collection by the county government of Embu, identified that ICT plays a key role in revenue collection thought there were other factors which affect the use of ICT on revenue collection.
