EFFECT OF E-PAYMENT SYSTEMS ON SUSTAINABLE REVENUE COLLECTION IN NAIROBI CITY COUNTY GOVERNMENT
EFFECT OF E-PAYMENT SYSTEMS ON SUSTAINABLE REVENUE COLLECTION IN NAIROBI CITY COUNTY GOVERNMENT
Nerius Chepkoech - Master of Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. James Ongwae Gichana - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. David Agong - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Governments in both developed and developing countries require revenue to finance their expenditures. Sustainable revenue collection is necessary in promoting efficiency in the service delivery and economic development of county governments. For effective mobilization of revenue, there is the need to put in place effective e-payment system. This study intended to establish the effect of e-services, mobile payment system and e-banking payment system on sustainable revenue collection in Nairobi county government. The study was supported by the information systems success theory, Diffusion Innovation Theory and Resource Based theory. A cross sectional research design was adopted. The target population for the study was the Nairobi County Government. The unit of study was the NCCG staff and KRA staff. This comprised of 98 middle level management employees and 143 low-level management employees. Due to the small size of the population, all the employees took part in the study. Primary data was collected using semi structured questionnaires. Descriptive statistics used include means, frequencies, percentages and standard deviation. Inferential statistics were Pearson’s product moment of correlation and multiple regression analysis. The study found that e-receipting improves county revenue collection, usage of e-services enhance revenue collection, e-billing facilitates revenue collection of the county and e-invoicing is enhances sustainability in revenue. The study found that the county government uses Mpesa to collect revenue, mobile payment is done through the USSD code*647# to facilitate payment of revenue in the county government, mobile app-payments are made through an app on android to enhance revenue collection in the county and web portal facilitates revenue collection in the county. The study concluded that e-services has the greatest effect on sustainable revenue collection in Nairobi City County Government, followed by e-banking payment system then mobile payment system had the least effect on the sustainable revenue collection in Nairobi City County Government. The study recommends that the government through the National and County government should implement policies that enhance sustainable revenue collection in government institutions. The Government of Nairobi City County should increase their public awareness campaigns to ensure that the consumers get the right information as pertains to e-payment in revenue collection.
