dc.description.abstract | Since taxes are the primary source of income for the Kenyan government,
discussions of corporate governance are now important since they affect how taxes
are collected. Increased government spending and the Kenya Revenue Authority's
failure to reach revenue collection goals account for Kenya's fiscal deficit. The
government has had to make difficult financial decisions, including borrowing from
other governments, issuing floating-rate Eurobonds, and also borrowing internally by
issuing infrastructure bonds. Despite the numerous reforms the nation has
implemented, KRA has been unable to collect enough tax income to address the
fiscal deficit. This study sought to establish the effect of corporate governance on
revenue collection at KRA. The study was guided by three theories namely; agency
theory, stewardship theory and stakeholder theory. A descriptive research design was
adopted. The population of the study was the 240 top level managers, middle level
employees and assistant managers at KRA. The sample size was 150 arrived at using
Yamane formula. The study relied on primary data collected using structured
questionnaires. Data analysis involved descriptive, correlation as well as regression
analysis. The independent variables for this study were board independence, board
meetings and board size while the dependent variable was revenue collection. The
regression results revealed that 50.9% of the variation in revenue collection can be
attributed to the 3 selected variables in this study. It was evident from the Anova
table that the degree of significance was 0.000. This value was less than the p value
of 0.05. Consequently, the model was therefore statistically significant for predicting
revenue collection based on corporate governance. Individually, board independence,
board meetings and board size were found to be significant determiners of revenue
collection at KRA. This study concluded that corporate governance practices are
essential for KRA to use in its endeavor to improve revenue collection. The study
recommends that management of KRA should ensure their boards are independent,
there is adequacy of board meetings and number of board memebers as this will
enhance revenue collection. It is further recommended that policy makers should
come up with sound policies to guide government agencies such as KRA on
corporate governance practices. Future researchers can focus on the effect of
corporate governance on revenue collection among county governments in Kenya. | en_US |