IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/80343.html
   My bibliography  Save this paper

The Impact Of System Automation On Revenue Collection in Kenya Revenue Authority. (A Case Study of SIMBA)

Author

Listed:
  • Gitaru, Kelvin

Abstract

The objective of the study was to examine the impact of system automation on revenue collection in Kenya revenue authority. This study employed descriptive study design. The study used secondary data collection. The study utilized KRA Customs data for ten financial years after Simba System.The data was analyzed using Gretl and presented in figures and tables. The study findings established that the number of transactions, increased significantly after the implementation process this means that due to revenue systems automation a high number of imported consignments were processed and passed through the centralized Document Processing Center (DPC). As a result of system, the shilling experienced a strong local currency then depreciated. The shilling has ever since been declining so sharply over the years against the US Dollar.This has a overall effect on the revenue collected in the sense that when the Kenyan shilling is weakened against the dollar i.e. one kshs trading for a very high value for the US dollar, the revenue collected will be of low value. The results established that the revenue collected was directly proportional to the exchange rates due to the positive sign in the coefficient. In conducting analysis of variance in the Gretl software, the probability value of p-value 2.6e-013 was obtained showing that the regression model was significant in predicting the relationship all the coefficients and revenue collected at 95% level of significance. The study findings established that there was a significant increase in the revenue collected after the automation to the simba system.The Exchange rates had an inverse effect on the revenue collected after the automation to the Simba system. The inflation rate was 10.5% in 2009 which increased to 15.2 in 2010 before slowing to 5.33% in 2011. This implies that the consumer price index in 2011 was 5.33. The study recommended that the ICT department should ensure that there is effective project coordination and change management for success of this automated system. Further, the department should ensure that there is a good data system and that is compatible with the system’s needs.

Suggested Citation

  • Gitaru, Kelvin, 2017. "The Impact Of System Automation On Revenue Collection in Kenya Revenue Authority. (A Case Study of SIMBA)," MPRA Paper 80343, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80343
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/80343/1/MPRA_paper_80343.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kusi, N.K., 1998. "Tax Reform and Revenue Productivity in Ghana," Papers 74, African Economic Research Consortium.
    2. repec:aer:wpaper:74 is not listed on IDEAS
    3. Luc De Wulf & José B. Sokol, 2005. "Customs Modernization Handbook," World Bank Publications - Books, The World Bank Group, number 7216.
    4. repec:aer:wpaper:20 is not listed on IDEAS
    5. Ireland, Peter N., 1994. "Supply-side economics and endogenous growth," Journal of Monetary Economics, Elsevier, vol. 33(3), pages 559-571, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samuel Otieno John, 2021. "Influence of iTax System on Service Delivery at the Kenya Revenue Authority," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(09), pages 191-197, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ingrid Ott & Stephen J. Turnovsky, 2006. "Excludable and Non‐excludable Public Inputs: Consequences for Economic Growth," Economica, London School of Economics and Political Science, vol. 73(292), pages 725-748, November.
    2. Leeper, Eric M. & Yang, Shu-Chun Susan, 2008. "Dynamic scoring: Alternative financing schemes," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 159-182, February.
    3. Stefano Bosi & David Desmarchelier, 2016. "Are the Laffer curve and the Green Paradox mutually exclusive?," Working Papers hal-04141602, HAL.
    4. Novales, Alfonso & Ruiz, Jesus, 2002. "Dynamic Laffer curves," Journal of Economic Dynamics and Control, Elsevier, vol. 27(2), pages 181-206, December.
    5. Agell, Jonas & Persson, Mats, 2001. "On the analytics of the dynamic Laffer curve," Journal of Monetary Economics, Elsevier, vol. 48(2), pages 397-414, October.
    6. Florian A. Alburo, 2010. "The Development Impact of Information Technology in Trade Facilitation," ARTNeT Working Papers 78, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    7. Alvarez-Cuadrado, Francisco, 2008. "Growth outside the stable path: Lessons from the European reconstruction," European Economic Review, Elsevier, vol. 52(3), pages 568-588, April.
    8. Ben Fine, 1998. "Endogenous Growth Theory: A Critical Assessment," Working Papers 80, Department of Economics, SOAS University of London, UK.
    9. Péter Gábriel & Lóránt Kaszab, 2019. "Laffer Curves for Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 18(4), pages 55-76.
    10. Turnovsky, Stephen J., 2000. "Fiscal policy, elastic labor supply, and endogenous growth," Journal of Monetary Economics, Elsevier, vol. 45(1), pages 185-210, February.
    11. Ferede Ergete, 2008. "Dynamic Scoring in the Ramsey Growth Model," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-27, September.
    12. Turnovsky, Stephen J, 2004. "The Transitional Dynamics of Fiscal Policy: Long-Run Capital Accumulation and Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(5), pages 883-910, October.
    13. Glomm, Gerhard & Jung, Juergen & Tran, Chung, 2018. "Fiscal Austerity Measures: Spending Cuts Vs. Tax Increases," Macroeconomic Dynamics, Cambridge University Press, vol. 22(2), pages 501-540, March.
    14. Strulik, Holger & Trimborn, Timo, 2012. "Laffer strikes again: Dynamic scoring of capital taxes," European Economic Review, Elsevier, vol. 56(6), pages 1180-1199.
    15. Pecorino, Paul, 1995. "Tax rates and tax revenues in a model of growth through human capital accumulation," Journal of Monetary Economics, Elsevier, vol. 36(3), pages 527-539, December.
    16. Eugenio J. Miravete & Katja Seim & Jeff Thurk, 2018. "Market Power and the Laffer Curve," Econometrica, Econometric Society, vol. 86(5), pages 1651-1687, September.
    17. Stephen Turnovsky, 2000. "Growth in an Open Economy: Some Recent Developments," Discussion Papers in Economics at the University of Washington 0015, Department of Economics at the University of Washington.
    18. Szilágyi, Katalin & Major, Klára, 2007. "Kormányzati beruházás kis, nyitott gazdaságban [Government investment in a small open economy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 29-48.
    19. Fernández, Esther & Pérez, Rafaela & Ruiz, Jesús, 2011. "Optimal green tax reforms yielding double dividend," Energy Policy, Elsevier, vol. 39(7), pages 4253-4263, July.
    20. Teguh Dartanto, 2012. "The 2008 Corporate Income Tax Reform and Its Contribution to Poverty Reduction in Indonesia," Working Papers in Economics and Business 201203, Faculty of Economics and Business, University of Indonesia, revised Apr 2012.

    More about this item

    Keywords

    system automation; SIMBA; revenue collection; KRA;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:80343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.