The Effect Of Strategic Management Practices On Reduction Of Revenue Collection At Domestic Taxes Department At The Kenya Revenue Authority

ABSTRACT

Strategic management is a modern way through which companies design plans of coping with challenges in the business environment. Strategic management has gained acceptance by most companies in order to remain effective and efficient in their operations. In this regard, the KRA has adopted strategic management practices with an aim of enhancing revenue collection. Revenue collection by the Kenya Revenue Authority is crucial to the economy of Kenya since tax is the major source of government revenue. There has been a conflict of results on the benefits of strategic managements on organizational performance. Some studies have found out that it is a costly affair that do not necessarily lead to achievement of objectives and realization of the organizational mission. Proponents of strategic management, on the other hand, idealizes that strategic management improves the performance of organizations. It is in this crisscross stand point that this study was undertaken. Further, the KRA has the mandate of collecting government revenue through its fiscal policies. This study proposal had the purpose of assessing the impact of strategic management practices on the reduction of revenue collection, a case of domestic taxes department at the Kenya Revenue Authority. This study had the following specific objectives: To determine the impact of use of technology, operational efficiency, customer service and strategic partnership in enhancing revenue collection by the Kenya Revenue Authority. The study used primary data that was collected through administration of questionnaires. The study had a target population of all the 105 top ranking staffs at the domestic taxes department at the KRA. The sample size had 82 respondents. The study adopted a descriptive research design. A descriptive research design is suitable for this study because the study had sought to assess the relationship between the variables. Data was analyzed in terms of descriptive statistics including means, percentage and standard deviations. Data was presented in frequency tables and pie charts. The study found out that strategic management practices impacts on reduction of revenue collection at the Domestic taxes department at Kenya Revenue Authority. The study has found out that strategic partnership is the most influencing factor, followed by technological influence customer service and operational efficiency. Strategic management practices ensures that that the objectives of an organizations are customer focused and are sought in the most efficient processes. The study recommends that the KRA should adopt technology in all its operations in order to foster efficiency and also enhance the customer service.