The effect of corporate governance on revenue collection in Kenya Revenue Authority

Abstract

The effects and contributions of corporate governance by organizations have been on a rise in recent times KRA included. However, the anticipated end results are most often not realized due to governance challenges which include political appointments of board members, inadequate skill personnel in the board and integrity issues from employees. Kenya Revenue Authority (KRA) embraced corporate governance as an enhancement of revenue collection strategy since its inception. The general research objective was to establish the effect of corporate governance on revenue collection. A case study of Kenya Revenue Authority was conducted. Statistical Package for Social Scientists (SPSS) was used and Spearman Correlation Coefficient and Multiple Regression Analysis to determine the magnitude of the relationship of corporate governance and revenue collection. The findings revealed that corporate governance variables namely; board size, had a negative effect on revenue collection while board roles, board effectiveness and policy and decision making had a significant positive relationship with revenue collection. Corporate Governance in general had a significant positive relationship with revenue collection. Corporate governance was found to have effect on 48.4% on revenue collection, thus desirable to study further.