The impact of Local Authority Transfer Fund on revenue within Local Authorities in Kenya
The shortcomings between the central government policy and the local government operations prompted the central government, as part of its responsibility to step in to support the local authority in their service delivery plans. The study problem is deduced from the marginally increasing payables despite the local authority transfer fund (LA TF) existence. Local authority transfer fund has led to improved spending. More money subsequently results into more project', a fact that has contributed to the increased payables within the local authority. Although other factors could be contributing to highly increasing debt level, key to it is unmatched revenue collection efforts within local authorities to its projects. The study seeks to answer the question as; what is the impact of LA TF on revenue at local authorities? Hence, the adoption of a descriptive longitudinal design. Longitudinal in the sense that data collected incorporated revenue sources before inception of LA TF and after LATF operationalization. The target population for this study is 175 local authorities in Kenya. Subsequently, the sample size was therefore pegged at fifty-three (53), being 30 % of the 175) local authorities in Kenya. Primary data was to be collected by use of questionnaires; the questionnaires included structured and unstructured questions. This study is both quantitative and qualitative in nature. In conclusion, the study established that though local authorities receive LATF in time, which subsequently boost the local authorities' income levels to a great extent, the funds impact on revenue collection efforts are moderately felt due to inefficiencies and effectiveness within the local authority operations Thus, the study recommends for an all inclusive approach in project identification to optimize the value of LATF.