The effectiveness of turnaround strategy at Kenya Revenue Authority
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The Kenya Revenue Authority is the sole body in charge of revenue collection and administration in Kenya. It was established in 1995 as a semi-autonomous government agency with the overall objective to provide operational autonomy in revenue administration. In the early years of its inception the Kenya Revenue Authority faced daunting challenges in terms bad corporate image, poor service delivery to taxpayers, poor internal systems and processes, a bloated workforce, inability to attract and maintain a professional workforce, political interference, low staff morale and poor use of information and communication technology as well as inability to meet stakeholders expectations. It was for these reasons that Kenya Revenue Authority has undertaken turnaround strategies to entrench changes in its strategic objectives and operations and in order to meet the increasing demands of its stakeholders. It is due to the pressure of change exerted by both the external and internal environment that has lead to the board of KRA and its top management to embark on a turnaround programme whose primary objective was to modernize and integrate the operations of KRA in line with international best practices and to achieve its vision of “being the leading Revenue Authority in the world respected for professionalism, integrity and fairness”. The research project set out to find out the effectiveness of the turnaround strategies implemented by the management of KRA. The key objective of the study was to find out how effective the turnaround strategies were in achieving the targeted organisational objectives. A comprehensive review of literature, both local and international was done. Strategy and in particular turnaround strategies as presented by various authors was analysed. Various kinds of turnaround strategies were identified and in particular which strategies are applicable in what circumstances. To test the effectiveness of the strategies undertaken a distinguished taxpayers were identified based on different tax heads and targeted. The respondents were chosen based on different tax heads administered by the Authority. Secondary data obtained from the Authority’s financial statement and corporate plans was also analysed. The respondents gave divergent views based on the strategies employed with some strategies having had a high positive impact on the respondents indicating high levels of efficiency whereas others did not have significant impact indicating low levels of effectiveness. The respondents also gave insights as to what areas need to be addressed to make the Authority more effective in meeting their needs and expectations. From the study it was found that the turnaround strategies employed by KRA were highly effective in meeting organisational goals. However some challenges were encountered in their implementation and other areas also need to be further addressed in order to make the organisation more effective. The study also identified areas for further research.
University of Nairobi