Functional Strategies and Performance of Kenya Revenue Authority
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Date
2024-10
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Publisher
Daystar University, School of Business and Economics
Abstract
The Kenya Revenue Authority (KRA) operates in a challenging environment marked by significant revenue leakage and tax non-compliance. Despite efforts, it has missed its revenue targets in four of the last five financial years, with a substantial deficit of 300 billion Kenyan shillings projected for 2023/2024. Customer satisfaction has also been declining. This study aimed to examine the effect of functional strategies on the performance of KRA. The main objectives of the study were to examine the functional strategies employed by KRA, assess the organizational performance of the KRA, and investigate the effects of functional strategies on the organizational performance of KRA. It (study) aimed to understand the relationship between functional strategies and the performance of KRA, focusing on the specific strategies used, their impact on organizational performance, and how they influence overall outcomes. The study was anchored in the systems theory of management, supported by the diffusion of innovation theory for functional strategies, and the dynamic capabilities theory for organizational performance. The population included 7,955 KRA employees, with a target of 2,009 participants based at the Nairobi headquarters. A sample size of 322 respondents was selected using stratified sampling to ensure representation from senior officers, middle-level officers, and ordinary staff. Data was collected through questionnaires and interview guides and analyzed using descriptive statistics, inferential statistics, and thematic content analysis. The study used the Statistical Package for the Social Sciences (SPSS), version 26, for quantitative analysis. Findings indicate that KRA has been employing functional strategies such as marketing, human resources, and research and development strategies, which have positively impacted performance. These strategies have contributed to tax base expansion, revenue growth, and increased brand acceptance. However, the study highlighted the need for deeper integration and alignment of these strategies. It also established a strong positive relationship between functional strategies and organizational performance. The study concludes that the KRA has effectively adopted a variety of functional strategies to enhance its organizational performance and that organizational culture plays a crucial moderating role in the relationship between KRA’s functional strategies and its performance outcomes. Recommendations include fostering cross-functional team collaboration and developing a unified strategic framework to optimize resources and enhance efficiency. Overall, the study underscores the importance of effectively implementing functional strategies to meet revenue targets, expand the tax base, and improve the brand.
Description
Master of Business Administration in Strategic Management
Keywords
Kenya Revenue Authority
Citation
Marus, A. (2024). Functional Strategies and Performance of Kenya Revenue Authority. Daystar University, School of Business and Economics