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STRATEGY IMPLEMENTATION AND PERFORMANCE OF KENYA REVENUE AUTHORITY

James Ombui Obiero - Master in Business Administration (Strategic Management), Kenyatta University, Kenya

Phelgona Genga - Department of Business Administration, Kenyatta University, Kenya


ABSTRACT

Organizations are indeed open systems and have to respond to their environment through appropriate strategies. The study sought to find out the major influence that concept of strategy implementation has on the performance of Kenya Revenue Authority. The objectives of the study were to establish effect of strategy resource allocation, performance targets, strategy communication and strategy supervision on performance of Kenya Revenue Authority. The study was based on Resource based view theory and Mckensy’s 7s theory of strategy implementation. The study used descriptive research design and a population of 150 respondents was considered. Quantitative data collected was analyzed by the use of descriptive statistics using SPSS (Version 22) and presented through percentages, means, standard deviations and frequencies. In addition, the study conducted a multiple regression analysis to estimate the model for the study. The analyzed data was presented in graphs, frequencies, charts and tables for interpretation and to enable draw conclusions and recommendations thereof. The study had a coefficient of correlation R of 0.869 an indication of strong of correlation between the variables and a coefficient of adjusted R2 was 0.749. The study found out that resource allocation, performance target strategy communication and strategy supervision significantly influenced firm performance of KRA. The study concludes that KRA employees performs their tasks accurately, KRA have information systems to improve the way employees performs their duties, KRA allocates sufficient funds to implement its strategies and have experienced employees in strategy implementation. Performance targets are set with outputs in mind and in terms of revenue collection. Performance targets focus on change in revenue collection and are set in line with customer satisfaction. Clear strategy communication had improved KRA performance, support from senior management had promoted realization of targets at KRA and regular departmental evaluations promotes organizational performance at KRA. Senior management provides a strong support fit for strategy implementation, senior management are directly involved in strategy implementation and have direct influence on strategy implementation. The study recommends that KRA ought to allocate sufficient funds to implement its strategies and have experienced employees in strategy implementation. Performance targets ought to focus on change in revenue collection and set in line with customer satisfaction. Regular departmental meetings at KRA ought to be held to share the targets for each employee, senior managers ought to be responsible for ensuring set targets are met and strategies formulated at KRA ought to be clearly communicated across all affected departments and senior management ought to support the implementation of strategies at KRA. Regular departmental updates ought to provide room for timely corrective action and managers ought to train their subordinates on how well to deliver on set strategy targets.


Full Length Research (PDF Format)