The Effect of Tax Administration on Tax Revenue Collection in Kenya Revenue Authority

Abstract

The research investigated the influenced of tax administration on the collection of tax revenue in Kenya. The study specifically aim to establish how tax compliance, tax structure, taxpayer services delivery influenced tax revenue collection in KRA. The study used the descriptive study design and management employees working at the KRA offices in Nairobi County was the chosen population. The study relied on raw data collected using a questionnaire. The questionnaires were issued to selected KRA managers using as online survey. The survey employed the descriptive and inferential statistical techniques to scrutinize the primary and secondary data gathered. Mean and standard deviation were computed using data gathered from the participants. The multivariate regression model was used to link the independent variables to the dependent variable. The results showed that tax compliance had a coefficient of β=0.300 (p-value =0.017) which revealed that tax compliance had positive and significant influence on tax revenue collection. The results further showed that tax structure had a coefficient of β=0.279 (p-value =0.039) which revealed that tax structure had a positive and statistically significant influence on tax revenue collection. Finally, the resulted established that taxpayer services delivery had a coefficient of β=0.355 and a corresponding p-value = 0.007 which was statistically significant at 5 percent level of significance. These results showed that taxpayer services delivery had positive and significant influence on tax revenue collection. This study therefore concluded that tax administration is central to countries development and therefore tax compliance, tax structure and taxpayers’ services are key to an effective tax administration strategy. The study recommends that management of KRA should come up with more stringent policies on tax administration in order to curtail tax evasion and increase tax revenue collection. Tax administration strategies should be based on the analysis of the performance of the existing strategies such adoption of automated systems, progressive policies implementation and tax rates harmonization in order to increase tax compliance and revenue collection.