IMPLEMENTATION OF ELECTRONIC TAX INVOICE MANAGEMENT SYSTEM AND REVENUE COLLECTION: CASE OF KENYA REVENUE AUTHORITY
IMPLEMENTATION OF ELECTRONIC TAX INVOICE MANAGEMENT SYSTEM AND REVENUE COLLECTION: CASE OF KENYA REVENUE AUTHORITY
Billy Koech - Student, Master of Public Policy and Administration, Kenyatta University, Kenya
Dr. Wilson Muna - Lecturer, School of Law, Arts and Social Sciences, Department of Public Policy and Administration, Kenyatta University, Kenya
ABSTRACT
The link between the employment of an automated tax invoice management system and revenue collection had not been clearly defined in the scholarly literature. The Kenya Revenue Authority (KRA), with the assistance of the government, had put measures in place to ensure tax compliance for funding government projects. However, despite these efforts, the nation continued to encounter challenges in tax revenue collection. One prominent issue was the lack of consolidation in tax administrative procedures, as there was no single Tax Procedures Act governing both national and county governments. Therefore, this study sought to establish the effects of implementing the Electronic Tax Invoice Management System (eTIMS) on revenue collection, with an emphasis on user adoption and staff capacity. The study was guided by the Technology Acceptance Model a nd Diffusion of Innovation Theory as its theoretical framework. It adopted a descriptive research design to establish the correlation between the variables. The target population comprised 3,905 KRA officers working at the head office and branches within Nairobi County, with a sample size of 400 respondents. Purposive sampling techniques were used, and data was collected using structured questionnaires. The study employed both quantitative and qualitative analysis, with quantitative data tested using regression analysis, while thematic analysis was used to analyze responses from open-ended questions. The findings revealed that staff capacity (β = 0.231, p = 0.004), and user adoption (β = 0.205, p = 0.001). The study established that staff capacity also played a critical role, but issues such as understaffing, lack of dedicated technical support, and outdated infrastructure limited its effectiveness. The study concluded that while eTIMS had improved revenue collection, its effectiveness depended on complementary factors such as user-friendly system design, well-trained staff, and continuous taxpayer engagement. It recommended simplifying the system interface, expanding training programs, increasing technical personnel, and investing in scalable infrastructure to enhance compliance and optimize revenue collection. Future studies should explore the long-term impact of eTIMS on tax compliance, the role of digital literacy in adoption, and the effectiveness of tax incentives in promoting voluntary compliance.
