Effects Of Ict Support Services On Revenue Collection
[CASE STUDY OF ENYA REVENUE AUTHORITY]

1.2 Research Problem

For a long time, tax collection has been seen as a despised activity. However, levies are crucial since without them, there would be no funds to construct public infrastructure that aids businesses and the general public to be more industrious. According to Awiti (2010) “raising revenue has traditionally been high on the agenda of governments, represented by the Ministry of Finance (MOF), because of the critical importance of import duties as a source of budget revenue for many developing countries” (pg. 20). Local authorities such as Kenya Revenue Authority are key driving forces for development. Local Authorities “provide infrastructure and services that contribute to economic development at the local level” (Awiti, 2010:21). Service delivery deterioration by local authorities in Kenya is so evident and lack of financial resources is the normal excuse given by many local authorities.

According to Ogondi (2011) the challenges affecting revenue collection are as a result of supervision problems due to high numbers of employees and budget constraints, taxes evasion by local community, administrative setbacks such as corruption, lack of enforcement on revenue collection by local authorities, lack of administrative capacity to fully tap revenue sources among others. The “National Business Agenda released by the private sector outlined that despite improved services”, taxpayers still faced problems “relating to customs clearance time, complexity of forms and procedures and understanding of statutory procedures such a valuation, classification and many more” (pg. 17).

Mwambingu (2002) examined the influence of change on Revenue Collection by KRA and found that “the change that had the greatest influence on the amount of revenue collected by the Authority was the introduction of targets, performance appraisals, the introduction of taxpayer education and information initiative, computerization of the administrative systems and change in corporate culture” (pg. 15). Kimeli (2003) on the other hand explored taxpayers? attitudes and tax compliance behavior in Kenya?s small and medium enterprises in Kerugoya and Kirinyaga. Muriithi (2003) conducted a study on the local tax amendments and collection of revenue in the country and he found that the tax amendments had positively impacted the general tax structure. Taking into consideration that related studies highlighted above and others such as those of: Mwambingu (2002), Kariuki (2002), Kieleko (2003) and Muriithi (2003) have dealt with various initiatives being undertaken at KRA on tax collection and tax compliance. Never the less not much research have evaluated the involvement of departmental structures such as the ICT, HR, Security, Procurement, Audit, Administration and finance in the support of revenue collection in KRA, thus the study sought to answer this question; what is the perceived effect of ICT support services on revenue collection at KRA?

1.3 Research Objective

To determine the strategic effect of ICT support services on revenue collection at Kenya Revenue Authority.

1.4Value of the Study

Revenue collection in Kenya involves many stakeholders and therefore it is driven by policy. The study findings can inform the policy makers on the areas and aspects of revenue collection that require policy interventions for the purpose of improving efficiency in its collection. The study also can be of significance to the government and management of KRA as it will provide information on the organs of the organizations that provide significance support on revenue collection.

Also in Practice, the management employees can use the findings of the study to get informed on the areas that require their attention both at their working places and in their other professional engagements. From these findings, improvement measures can be made in order to have better coordination within the organization so as to realize the company?s goals and objectives. Other organizations with the intention of implementing support structures in its organizations can also find this study beneficial. Various scholars will also use the research as a useful point of reference as well as for further research in a similar scope.

The study enriches the system theory by highlight the way organizations are achieving and improving competitive advantage through embracing technology. The theory explains the reason why organizations adopt technical innovations. The system theory further helps in understanding organizations as systems in that organizations interact with outside world which are often referred to as systems. On the other hand, institutional theory which stipulates that in strategic management the fundamental sources and drivers to firms? superior performance are mainly associated with the attributes of their resources and capabilities to interact with the environment which there are operating in. The theory presumes that any organization has to conform to its environment and thus organizational environment and external pressures can objectively influence the interaction between departments in the organization to promote effectiveness in revenue collection.