EFFECTS OF LEGAL FRAMEWORK ON TAX REVENUE COLLECTIONS OF THE ENTITY
Keywords:
Legal Framework, tax revenue collection, Institutional Theory, Tana River CountyAbstract
Despite adopting various revenue enhancement measures, Tana River County Government continues to experience inconsistent tax revenue collection, undermining service delivery and fiscal sustainability. Challenges such as revenue leakages, low taxpayer compliance, weak enforcement, and administrative inefficiencies persist. Although a strong legal framework is widely recognized as essential for improving revenue systems, implementation in the county has been constrained by limited tax legislation, inadequate enforcement structures, and weak coordination between administrators and taxpayers. This study examined the influence of the legal framework on tax revenue collection in Tana River County. Guided by Institutional Theory by North, which emphasizes the role of formal rules and enforcement mechanisms in supporting economic performance, the study employed an explanatory research design targeting 102 employees in the County Revenue Department. Primary data was collected using structured questionnaires based on a five-point Likert scale, while secondary data was obtained from the Kenya Revenue Authority, the County Department of Finance, and the Commission on Revenue Allocation. Linear regression analysis assessed the effect of the legal framework on revenue outcomes. The study achieved a 92.2% response rate. Results showed a strong positive relationship (R=0.684) between the legal framework and tax revenue collection, with legal framework factors explaining 61.4% of the variation in revenue performance (R²=0.614). The relationship was statistically significant (F=3.044, p=0.000), and β=0.308, indicating that each unit improvement in the legal framework increases revenue collection by 0.308 units. The study concluded that legal frameworks are essential for effective revenue mobilization across the entire county region and recommended strengthening tax legislation, compliance monitoring, and joint enforcement systems.
DOI: https://doi.org/10.5281/zenodo.17830619
Citation: Bonayah, M. B., & Rono, L. (2025). EFFECTS OF LEGAL FRAMEWORK ON TAX REVENUE COLLECTIONS OF THE ENTITY. Academic Journal of Humanities and Social Sciences Research, 2(2), 1-12.
https://doi.org/10.5281/zenodo.17830619
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Copyright (c) 2025 Mohammed Bashorah Bonayah, Professor Lucy Rono, PhD
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