Effect of information systems on revenue collection by local authorities in Homa Bay County, Kenya

Effect of information systems on revenue collection by local authorities in Homa Bay County, Kenya

This paper examined the effect of Information Systems on revenue collection of Local Authorities in Homa Bay, Kenya. Study objectives included establishing the relationship between internal control systems, Information Systems and revenue collection in Kenyan Local Authorities; determining the levels of quality service offered to the clients by Local Authorities and investigating whether Information Systems relate to effectiveness and efficiency of Revenue Collection. A structured cross-section survey was used to collect data from 2,007 individuals, of which 165 were Local Authorities staff and 1,842 were traders in Homa Bay Municipality. The study found that: there is a relationship between Information Systems and both efficiency and effectiveness in revenue collection, there is a strong positive relationship between Internal Control Systems and revenue collection as reported by 97% of the respondents, and that resistance to change by the council staff was derailing the full implementation of Information Systems. The study is useful in reviewing the institutions’ Act and statutes to cater fully for the integration of IS in the management activities of Homa Bay Municipal Council, to managers at all levels, public sector, policy makers and scholars. the type of value desired (Norton, 2006). Since the Local Authorities (cities and Local Governments) are very important to the citizenry. They are the engines of growth and centers of development. They provide cultural; educational; management, research, commerce and political services. They also do offer employment, best health facilities and boost the country’s economy (UN-HABITAT, 2004). For instance, the City Council of Nairobi, the largest Local Authority in Kenya, produces more than half of the country’s Gross Domestic Product. This means that Local Governments are important institutions in a country’s development. Kenya has a total of 175 Local Authorities categorized either as City council, Municipal councils, Town councils or County councils all of which are coordinated by the Central Government through the Ministry of Local Government the act as the main overseer on how these councils carry out their activities.