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

Forms of Revenues

The researcher sought to establish the effect of tax structure on revenue collection in Nairobi County government. In carrying out this task the researcher used table of means and standard deviations to help interpret the results. A Likert scale of 1 to 5 was used where a mean of 0-0.9=

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not at all, 1-1.9= little extent, 2-2.9 = moderate extent, 3-3.9 = great extent and 4-5= very great extent to rate the extent to which the respondents agreed with forms of revenues used. Table 7 below gives the results of the study. The findings of the study indicate that property tax and business license had a mean of 3.389 and 3.7834 respectively indicating that the majority of the respondents identified the two forms of revenue to have a great effect on revenue collection. Service charge had a mean of 4.2994 implying that most respondents said it had a very great effect on revenue collection. The standards deviations were small showing minimal variations of responses from the study respondents.

Table 7: Forms of Revenues

		N	Mean	Std. Deviation	Variance
	Property tax	157	3.7389	.70843	.502
	Business license	157	3.7834	.69169	.478
	Service charge	157	4.2994	.70224	.493

The findings of the study are supported by Alm (2013) when he concluded that property tax revenue represents under 0.5% of GDP in numerous African nations. In the 1990s, property taxes represented 40% of all sub-national taxes in developing nations (Bird and Slack 2002). In Ghana property tax represents around 14% of the aggregate revenues of nearby congregations, a normal of 6.1% in local councils in Sierra Leone, and fewer than 10% in The Gambia (normal for the period 2006 - 2008). In Liberia, where local councils are not permitted to gather revenue, property tax represents around 1% of aggregate revenues of the focal government. This implies property tax has not been gathered to the normal level however can contribute a lot of revenue to government.