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

International Journal of Economics, Commerce and Management, United Kingdom
revenue. The county governments can raise and spend what they raise. Be that as it may, what the national government collects is to be shared among the two levels of government.

Article 202 accommodates the idea of evenhanded shares. The article requires that revenue raised by the national government be shared evenhandedly between the national and county governments. The county governments may likewise be given extra portions from the national government's offer of revenue. These extra revenues might be given restrictively or unequivocally (Kramon and Posner, 2011).

Article 203 gives a detailed standard to be followed in vertically deciding the fair shares of both the national and county governments from one perspective; and evenly among the 47counties. This standard joins the standards of financial balance which must be followed while deciding the shares. Collection of revenue in Nairobi City County has been challenging due to the perception in the public that there is decreased revenue alongside increased service demands (Lagomarsino, Garabrant, Adyas, Muga&Otoo, 2012). Many services go undelivered allegedly due to insufficient funds to cater for the said services just like other Local Governments therefore failing to meet their legal obligations. Many studies have been carried out in the country to improve local participation in developmental matters and governance to the people as well as financial management in order to put available revenues into better use. However, there is lack of enough studies to assess issues affection revenue collection in local Governments and this scenario therefore informs this study to investigate factors affecting revenue collection in the Nairobi City County with a view to identify the causes and gaps and take corrective measures to avert the same. This in turn offered additional contribution to already complete studies in revenue mobilization and its uses in Local Governments.