Effects Of Strategic Innovations In Optimization Of Revenue Collection In County Goverments Of Western Kenya

Abstract

Governments are aiming at increasing revenue collection through strategic innovations and measures that helps in maximizing revenue. There have been significant shortages in revenue collection at all levels of government as a result there are innovations and strategies that the governments comes up with so that to optimize the revenue. The purpose of the study was to assess the strategic innovation on revenue collection that optimized the amount of revenue collection in county governments of Western Kenya. The study was guided by the following objectives: to determine the effect of automation on optimization of revenue collection in county governments of Western Kenya; to examine the influence of outsourcing on optimization of revenue collection in county governments of Western Kenya; to examine the effect of discounting on optimization of revenue collection in county governments of Western Kenya; and to determine the influence of monitoring and evaluation on optimization of revenue collection in county governments of Western Kenya. A survey research design will be used in the study. The target population consisted of all revenue staff in the 4 identified counties. A census inquiry was used to study all the revenue staff. The study population to be used therefore consisted of 32 staff from Busia County, 29 from Kakamega County, 24 from Bungoma County and 25 from Vihiga County leading to total of 110 sampled respondents. By employing survey research design, data was collected using a questionnaire after ascertaining its content validity through experts and internal consistency reliability through cronbach alpha result. Data was then analyzed using descriptive and inferential statistics. The study employed regression analysis with aim of determining the significant relationships between the independent and the dependent variable sets. The government of Kenya is able to identify the challenges facing the county government revenue collection in optimizing revenue collection. Also, the country is able to know the importance of ranking the counties, provinces in terms of the amount of revenue collected. The researcher found out that automation affects optimization of revenue collection in Western Kenya (P=0.044). It was contented that outsourcing affects optimization of revenue collection in Western Kenya (P=0.000). It was found out that discounting affects optimization of revenue collection in Western Kenya (P=0.030). In addition the study revealed that monitoring and evaluation affects optimization of revenue collection in Western Kenya (P=0.032). The study concludes that strategic innovations affects optimization of revenue collection in Western Kenya. The study recommends that the county governments of western Kenya need to improve the efficiency and effectiveness of strategic innovations in order to increase the level revenue collection in the counties.