DIGITALIZATION AND EFFICIENCY OF REVENUE COLLECTION IN NAIROBI CITY COUNTY, KENYA: THE CONTRIBUTION OF E-FILING SYSTEMS, MOBILE PAYMENT PLATFORMS, REVENUE DATABASES AND AUTOMATED COMPLIANCE MONITORING TOOLS
DIGITALIZATION AND EFFICIENCY OF REVENUE COLLECTION IN NAIROBI CITY COUNTY, KENYA: THE CONTRIBUTION OF E-FILING SYSTEMS, MOBILE PAYMENT PLATFORMS, REVENUE DATABASES AND AUTOMATED COMPLIANCE MONITORING TOOLS
Alex Ngunjiri Kariuki - Department of Public Policy and Administration, Kenyatta University, Kenya
Moses M. Muthinja, PhD - Department of Public Policy and Administration, Kenyatta University, Kenya
ABSTRACT
Revenue collection in Nairobi City County, Kenya has remained inefficient despite substantial investment in digital systems. Persistent system downtimes, delayed payment reconciliation, fragmented revenue modules and residual manual processes have slowed service delivery and weakened compliance enforcement, at a time when devolved units are under pressure to mobilize own-source revenue to finance service delivery. Digitalization has emerged as the principal strategy for addressing these weaknesses, yet empirical evidence on how specific digital tools affect administrative efficiency at the county level is scarce. This study examined the effect of digitalization on the efficiency of revenue collection in Nairobi City County. Specifically, it assessed the effects of e-filing systems, mobile revenue payment platforms, revenue databases and automated compliance monitoring tools on the efficiency of revenue collection. The study was anchored on the Technology Acceptance Model, Systems Theory, Diffusion of Innovation Theory and New Public Management Theory. A correlational research design was adopted, targeting 337 officers of the Nairobi City County Revenue Department, from whom a sample of 183 officers was drawn using stratified random sampling. Data were collected through structured questionnaires administered via Google Forms and key informant interviews, and 153 questionnaires were returned, a response rate of 83.6%. A pilot test in Kiambu County confirmed the validity and reliability of the instrument, with Cronbach’s alpha coefficients ranging from 0.779 to 0.897. Data were analysed using descriptive statistics, Pearson correlation and multiple linear regression, after diagnostic tests confirmed normality, homoscedasticity and the absence of multicollinearity. The regression results showed that the four digitalization strategies jointly explained 78.7% of the variance in the efficiency of revenue collection (R² = 0.787, F(4, 148) = 137.076, p < 0.001). All four predictors had significant positive effects: e-filing systems (β = 0.468, p < 0.001), automated compliance monitoring tools (β = 0.324, p < 0.001), mobile revenue payment platforms (β = 0.315, p < 0.001) and revenue databases (β = 0.307, p < 0.001). The study concluded that digitalization has a significant and substantial positive effect on the efficiency of revenue collection, with e-filing systems as the leading contributor. It recommends continued investment in reliable e-filing infrastructure, streamlined mobile payment reconciliation, better calibration of compliance alerts, improved completeness of revenue database records and an integrated, interoperable digitalization strategy.
