ORGANIZATIONAL POLICY AND ITS IMPACT ON THE DIGITIZATION OF TAX COLLECTION IN COUNTY GOVERNMENTS: A CASE STUDY OF MACHAKOS COUNTY
Abstract
Statement of the Problem: Machakos County Government experienced a significant 47.5% decline in revenue collection from 197.86 million in FY 2022/23 to 103.82 million, primarily attributed to manual tax collection systems that create revenue leakages and corruption loopholes, indicating that full digitization of tax collection has not been achieved despite national-level digitization success.
Purpose of the Study: This study aimed to investigate the effect of organizational policy on the digitization of tax collection in Machakos County Government and to recommend measures that can enhance digitization of tax collection among county governments.
Research Methodology: The study employed a descriptive research design targeting 60 respondents selected through convenience and purposive sampling from 1,304 county government employees across six departments. Data was collected using structured questionnaires and key informant interviews, then analyzed using SPSS for quantitative data and thematic analysis for qualitative data.
Findings/Results: The study found that 83% of respondents confirmed the existence of digital tax collection systems in the county. Tax compliance levels were rated as very high by 41% and average by 43% of respondents due to digitization efforts. However, challenges including inadequate ICT infrastructure, infrequent software updates, and gaps in policy frameworks hinder full digitization implementation.
Conclusion: Organizational policy serves as the core strategy that drives the adoption and utilization of digital tax collection processes. While Machakos County has partially adopted digital systems for parking fees, land rates, and licensing fees, complete digitization requires addressing existing systemic challenges.
Recommendation: County governments should establish robust ICT infrastructure, ensure frequent software and hardware updates, develop comprehensive policy frameworks for digital platforms, conduct regular staff training programs, and implement public sensitization campaigns to enhance digital tax system adoption.
Keywords: Organizational Policy, Digitization, Tax Collection, County Governments, Machakos County
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