Factors Affecting Revenue Growth by County Governments in Kenya

The study sought to identify factors affecting revenue growth among County Governments in Kenya using Kiambu County as the case study. County Government of Kiambu consistently failed to meet its revenue collection targets following the creation of devolved governments after the promulgation of the new Constitution of Kenya 2010. County Governments were expected to collect own-source revenues to supplement equitable, conditional and unconditional grants received from the National Government. Its specific objectives included to establish the effect of public participation on revenue growth, to establish the effect of technology on revenue growth, to establish the effect of enforcement of laws on revenue growth, and to establish the effect of increase of taxation on revenue growth. The research employed a descriptive survey research design. Primary data was collected using questionnaires, while secondary data was derived from published material regarding devolution and revenue collection by sub-national governments in Kenya and beyond. The Statistical Package for Social Sciences and Microsoft Excel were used to analyse and process the primary data collected, and the information generated was presented in form of tables. All the factors affecting revenue growth (public participation, technology, enforcement of laws, and increase of taxation) were found to be significant using a multiple linear regression as shown by their positive beta coefficients of (ß=0.935) with P Value < 0.05 at .000, (ß=0.867) with P Value < 0.05 at .000, (ß=0.825) with P Value < 0.05 at .000, and (ß=0.725) with P Value < 0.05 at .000 respectively. These findings affirmed the importance of the factors under study and therefore County Governments should put due consideration for optimum revenue growth.