An empirical review of factors affecting revenue collection in nairobi county, kenya

© Ngicuru, Muiru, Riungu & Shisia
further contends that while the effect of decentralization on revenue rising is dubious; the most significant proof proposes that administration structure and public resource activation have little to do with each other.

As per a site report United Nations Development Program (UNDP)(2008), there are two potential sources of revenue for local government, taxation and user charges. As per the study, consideration is paid to the structure of local frameworks of taxation and the bases which have a tendency to be depended upon; the utilization and propriety of local cost recuperation; and the handy requirement confronted in revenue collection. The study takes note of that there are minimal successful and wide base tax handles accessible to governments in developing nations and that regardless of the level of government to which these taxes are doled out; frequently their bases are constrained and their collection wasteful. The study further talks about that for different reasons, hypothetical and political, local tax bases have a tendency to be more constrained and divided than those abused by the inside. Moreover, regulatory shortcomings seem to undermine the local tax push to a degree more noteworthy than that endured by the middle. The study finds that practically speaking user charges imposed on a utilization bases, have not been generally used at the local level.

Heller (2005), in his contention on the fundamental basic theory of taxation as referred to in the site report UNDP (2008) says that tax bases which are unevenly appropriated between localities, for example, those on common resource and exchange are unseemly contender for decentralization as a result of their repercussions for value. In the perspective of Heller (2005), income redistribution and adjustment are inside the best possible area of the national government and that localities ought not to try to advance these goals through such means as corporate and individual income taxes.

The site likewise referred to Francis and James (2003) who says that institutional, political, authoritative, auxiliary and social imperatives describe the tax frameworks of developing nations at both national and local level. Francis and James further expresses that, handy hindrances which hinder productive revenue collection and cause significant revenue deficiencies are in no way, shape or form unconventional to local government additionally an issue at the national level. According to Francis and James, staff competence, well- defined tax legislation, and effective means of enforcement constitute the best way to mitigate these challenges. Whether central or local governments’ ability to carry out their responsibilities to the citizenry or not is dependent on the availability of financial resources to management.

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