Assessment of Innovative Money-Collecting Systems Strategy for Mobilizing Own-Source Revenue in Isiolo County Government
DOI:
https://doi.org/10.70619/vol1iss2pp10-22Keywords:
Own-sources Revenue, Resource Mobilization, Innovative Money-Collecting Systems, Income-Generating, Isiolo County GovernmentAbstract
The county governments are expected to mobilize their own-sources revenue to bridge the gap in equity share. Despite the elaborate national fiscal policies and legislative frameworks on own-source revenue mobilization, many county governments, including Isiolo, have continued to report deficiency and inability to increase their own-source revenue, adversely affecting service delivery. This study was set out to assess the innovative money-collecting systems strategy for enhancing own-source revenue in Isiolo County. The rational expectations theory of technology guided it. A cross-sectional descriptive survey research design was applied. Data was collected from the revenue-generating departments and county assembly-budget and finance committee. Since the target population (60) was small, all were included in the study. The content, construct, face validity, and reliability were applied to check the quality of the questionnaire used in data collection. Mean, frequencies, percentage, and factor analysis were computed using statistical package for social sciences, while regression analysis was used to test the hypothesis. The study found that Isiolo County heavily relied on equity share to execute its functions despite gazetting own-source revenue streams. One drawback was the weak innovative money-collecting systems strategy. The study noted a weak electronic revenue collecting system, hence, loopholes in own-source revenue mobilization initiatives. The need to re-address innovative money-collecting systems strategy was evident; hence the county government should adopt e-billing, e-payment, and security controls systems in collecting own-source revenue. The findings have implications on systems for collecting own-source revenue, budgetary allocation and further affect practices in collecting own-source revenue in Isiolo County government and others.
References
Aditya, P. K., & Muturi, W. Factors Affecting Revenue Collection Efficiency By County Governments In Kenya-A Case of Kiambu County. International Journal of Social Sciences and Information Technology, 3 (8), 2371, 2384. https://www.researchgate.net/profile/Patrick-Adenya/publication/328809171_factors_affecting_revenue_collection_efficiency_by_county_governments_in_kenya-a_case_of_kiambu_county/links/5c77dfb0a6fdcc4715a2ba32/factors-affecting-revenue-collection-efficiency-by-county-governments-in-kenya-a-case-of-kiambu-county.pdf
Africa Capacity Report [ACR], (2016). Capacity Imperatives for Domestic Resource Mobilization in Africa. https://www.acbf-pact.org/sites/default/files/ACR_2015_11_2015_Web_v2.pdf
Ayala, I. H. & Palacio-Vera, A. (2014). The Rational Expectations Hypothesis: An Assessment from Popper's Philosophy. https://ideas.repec.org/p/lev/wrkpap/wp_786.html.
Commission on Revenue Allocation [CRA], (2020). Statement by CRA on the Third Revenue Sharing Basis. https://cra.go.ke/2020/08/05/statement-by-cra-on-the-third-revenue-sharing-basis/
Commission on Revenue Allocation (CRA) (2019). Recommendation on the basis for equitable sharing of revenue between national and county governments financial year 2020/2021. https://www.crakenya.org/wp-content/uploads/2013/10/CRA-Recommendation-on-the-Basis-for-Equitable-Sharing-of-Revenue-Between-National-County-Governments-for-FY2020-21.pdf
Committee of Experts on International Cooperation in Tax Matters (2018). The role of taxation and domestic resource mobilization in the implementation of sustainable development goals. Twentieth session. https://www.un.org/esa/ffd/wp-content/uploads/2018/08/CRP19-The-Role-of-Taxation-and-Domestic-Resource-Mobilization-in-the-Implementation-of-the-Sustainable-Development-Goals.pdf
Coplin, N., & Nwafor, A. (2019). It’s not all about the money: Domestic revenue mobilization, reducing inequality and building trust with citizens. Oxfam library briefing papers. https://oxfamilibrary.openrepository.com/bitstream/handle/10546/620754/bp-its-not-all-about-money-drm-080519-en.pdf
De Paepe, G., Hart, T. & Long, C. (2017). Domestic resource mobilization and the transition to sustainable development: Synthesis of Asia case studies. Oversees Development Institute Report. https://www.odi.org/sites/odi.org.uk/files/resource-documents/11753.pdf
Development Initiatives (2018). Strengthening sub-national government own-source revenue mobilization in Kenya: progress, challenges and opportunities. http://devinit.org/wp-content/uploads/2018/12/Strengthening-subnational-government-OSR-mobilisation-in-Kenya.pdf
Fjeldstad, O. H. (2013). Revenue mobilization at sub-national levels in Sudan. Sudan Report. https://open.cmi.no/cmi-xmlui/handle/11250/2475181
Githinji, L. M., Okuto, E. & Agembo, W. (2018). Devolved Governance and Financial Resource Mobilization in County Governments in Kenya: A Case of Kiambu County. The international journal of humanities & social studies 6(9), 16-30. https://www.researchgate.net/publication/328079833_Devolved_Governance_and_Financial_Resource_Mobilization_in_County_Governments_in_Kenya_A_Case_of_Kiambu_County/link/5bb649294585159e8d8672ca/download
Gituma, H. K. (2017). Determinants of effective revenue collection by Embu County, Kenya (Doctoral dissertation, University of Embu). http://www.repository.embuni.ac.ke/handle/123456789/2033
International Corporate Governance and Financial Regulation [ICGFR], (2018). https://s3-eu-west-1.amazonaws.com/s3.sourceafrica.net/documents/119525/Consolidated-Annual-County-Budget-Implementation.pdf
International Monetary Fund (IMF) (2019). International monetary fund annual report 2019: Our connected world. International Monetary Fund. https://www.elibrary.imf.org/view/IMF011/26120-9781498321563/26120-9781498321563/26120-9781498321563.xml?language=en
Isiolo County Government Consultancy Report (2019). Assessment of own-source revenue streams for Isiolo County. https://www.kesra.ac.ke/images/Research/Isiolo_County_Consultancy_Report_Final-1.pdf
Kangave, J., Nakato, S., Waiswa, R., & Zzimbe, P. (2016). Boosting Revenue collection through taxing high net worth individuals: The case of Uganda. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2776590
Karimi, H., Maina, K. E., & Kinyua, J. M. (2017). Effect of technology and information systems on revenue collection by the county government of Embu, Kenya. International Academic Journal of Information Systems and Technology 2(1), 19-35. http://41.89.240.73/handle/123456789/1695
Karori, N., Muturi, W., & Mogwambo, V. A. (2016). Influence of revenue collection efficiency on the operational performance of Kisii county government, Kenya. International journal of social sciences and information technology 2(3), 235-240. https://www.ijssit.com/main/wp-content/uploads/2016/06/INFLUENCE-OF-REVENUE-COLLECTION-EFFICIENCY-ON-THE-OPERATIONAL-PERFORMANCE-OF-KISII-COUNTY-GOVERNMENT-KENYA.pdf
Kessy, S. S. (2020). Electronic Payment and Revenue Collection in Local Government Authorities in Tanzania: Evidence from Kinondoni Municipality. Tanzania Economic Review, 9(2). http://196.44.162.39/index.php/ter/article/view/3449
Kimutai, B. D. (2017). Revenue Mobilization Approaches and their Influence on County Socio-Economic Development in North Rift Region, Kenya (Doctoral dissertation, Doctoral Thesis). School of Human Resource Development, Moi University, Eldoret Kenya). http://41.89.160.13:8080/xmlui/handle/123456789/313
Kosaye, S. (2018). Factors affecting revenue collection of county governments in Kenya, A case of Marsabit County. International journal of social sciences and information technology. 4(5), 289-305. https://www.ijssit.com/main/wp-content/uploads/2018/05/Factors-Affecting-Revenue-Collection-Of-County-Governments-In-Kenya.pdf
Kinoti, M. W. (2017). Influence of Green Marketing Practices and Corporate image on Performance of ISO 9000 and 14000 Series Certified Firms in Kenya. ORSEA Journal, 6(1) 1-12. http://www.journals.udsm.ac.tz/index.php/orsea/article/view/848
Musleh, U. A. (2017). Local Government Decentralization Efforts for Revenue/Resource Mobilization in Developing Countries: Rhetoric or Realities in Bangladesh. Journal of East Asian Studies, 15, 215-257. https://core.ac.uk/download/pdf/87163204.pdf
National Treasury, (2021 [A]). Press Release, 30th April 2021 – Budget & Finance Bill Presented to Parliament. https://www.treasury.go.ke/press-releases/
National Assembly, (2021). The Division of Revenue Bill. http://webcache.googleusercontent.com/search?q=cache:HoMKkxUKGDQJ:kenyalaw.org/kl/fileadmin/pdfdownloads/bills/2021/TheDivisionofRevenueBill_2021.pdf+&cd=3&hl=en&ct=clnk&gl=ke
National Treasury, (2021 [C]). Press Statement – Transfers to County Governments. https://www.treasury.go.ke/press-releases/
Ngicuru, P. N., Muiru, M. & Riungu, I. (2016). Effect of selected factors affecting revenue collection in Nairobi City County Government. American Journal of Finance 1(1),1 – 10. http://ir-library.egerton.ac.ke/handle/123456789/1447
Odanga, V. (2019). Revenue diversification in counties with a focus on Own Source Revenues (Doctoral dissertation, Strathmore University). https://su-plus.strathmore.edu/bitstream/handle/11071/6725/Revenue%20diversification%20in%20counties%20with%20a%20focus%20on%20Own%20Source%20Revenues.pdf?sequence=3&isAllowed=y
Okiro, A. (2015). The Effect of E-Payment System on Revenue Collection by the Nairobi City County Government (Master thesis, Strathmore University, Kenya). University)http://erepository.uonbi.ac.ke/bitstream/handle/11295/93274/Okiro_The%20effect%20of%20e-payment%20system%20on%20revenue%20collection%20by%20the%20Nairobi%20city%20county%20government.pdf?sequence=1.
Otieno, D. C. (2021). Kenyan debt unsustainable and has reached a crisis level – says Kenyan Peasants League. https://viacampesina.org/en/kenyan-debt-unsustainable-and-has-reached-a-crisis-level-says-kenyan-peasants-league/#:~:text=The%20loan%20is%20to%20be,or%2062.5%25%20of%20the%20economy.&text=82%20trillion%20before%20June%202022
Siddiquee, N. A., Nastiti, D., & Sejati, N. A. (2012). Regional autonomy and local resource mobilization in eastern Indonesia: Problems and pitfalls of fiscal decentralization. Asian Affairs: An American Review, 39(1), 44-68. https://www.tandfonline.com/doi/pdf/10.1080/00927678.2012.649636?needAccess=true
Tabachnick B. G., Fidell LS. (2007), Using Multivariate Statistics. Pearson Education Inc.
Tullock, Z. (2017). Developing Rural Municipalities’ Own-Revenue Sources. https://sustainabledevelopment.un.org/content/documents/1732The%20Challenge%20of%20Local%20Government%20Financing%20in%20Developing%20Countries%20_3.pdf.
UN-Habitat. (2015). The challenge of local government financing in developing countries. https://sustainabledevelopment.un.org/content/documents/1732The%20Challenge%20of%20Local%20Government%20Financing%20in%20Developing%20Countries%20_3.pdf
Wawire, N. (2020). Constraints to enhanced revenue mobilization and spending quality in Kenya. Policy Paper, 163. https://www.cgdev.org/sites/default/files/PP163-Enhanced-Revenue-Kenya-Full.pdf
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Roba Abduba Qanchora, Paul Gichohi (PhD) , Susan Kambura
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
