The Impact of Itax on Revenue Collection: a Case Study of Nairobi City County

Abstract

The aim of the study was to determine the effect of iTax adoption and ETR inclusion in iTax system on revenue collection from Nairobi City County. Stratified sampling was used to select 222 respondents from the tax body for the study. Data collection done using structured questionnaires. Frequency statistics used for determining the distribution of the demographics. Descriptive statistics used to check for whether the respondents agreed or disagreed on iTax adoption and ETR adoption questions. Correlation analysis used to test for the relationship between iTax adoption and introduction of ETR. Multiple regression models were to assess the effect of ETR inclusion and iTax adoption on tax collected by KRA in Nairobi City County. The statistical analysis revealed that both before and after iTax introduction, iTax adoption influences revenue collection by the Nairobi City County positively. Furthermore, the expected inclusion of ETR into the iTax platform is also associated with a possible decline in the revenues collected by the county’s revenue collection systems. Nonetheless, it was witnessed that only iTax adoption proved statistically significant on the revenues collected after iTax unlike before iTax was adopted (p<0.05). However, the revenues collected by KRA was always positive, before and after iTax adoption across the respective financial years.