Poor Revenue Collection by Local Authorities: Case Study of Kakamega Municipal Council
POOR REVENUE COLLECTION IN LOCAL AUTHORITIES IN WESTERN PROVINCE
A CASE STUDY OF KAKAMEGA MUNICIPAL COUNCIL
BY
GERISHOM WAFULA MANASE
REG. NO. MBA (DL) 112/10186 (ACCOUNTING AND FINANCE)
A Research Project proposal submitted to Mount Kenya University in partial fulfillment of requirement for the degree of Masters in Business Administration, Accounting and Finance
June 2012
ABSTRACT
This study will explore the issue of lack of adequate revenue collection in local authorities Western Province; A case Study of Kakamega Municipal Council.
First, it will describe the important role the local authorities play in the service delivery. They provide infrastructure and services that contribute to economic development at the local level (Ministry of Local Government _MOLG, Budget guidelines, 1999) and how lack of revenue affects this important role. This paper will go on to account for why there is the poor collection of revenue, looking at possible explanatory factors such as financial policies, management systems, decentralization of local authorities and the link there is between revenue collection and expenditure (Smoke (1991).
The primary hypothesis is that the challenges of revenue collection can be explained by a combination of factors including financial policies, management systems, decentralization of local authorities and the link there is between revenue and expenditure.
The methodology this research will employ include a review of secondary sources about history of Kakamega Municipal Council; history of local authority and systems of management; challenges facing local authorities in the implementation of the new constitution (Algak E-habari June 9, 2011, www.igfc.go.ug/corporate.php); the Local Authority Act Cap 265; other researches that have been done on local authorities; there is no information regarding revenue collection in Kakamega Municipal council.
There will be primary sources of data collection that will be
A CASE STUDY OF KAKAMEGA MUNICIPAL COUNCIL
BY
GERISHOM WAFULA MANASE
REG. NO. MBA (DL) 112/10186 (ACCOUNTING AND FINANCE)
A Research Project proposal submitted to Mount Kenya University in partial fulfillment of requirement for the degree of Masters in Business Administration, Accounting and Finance
June 2012
ABSTRACT
This study will explore the issue of lack of adequate revenue collection in local authorities Western Province; A case Study of Kakamega Municipal Council.
First, it will describe the important role the local authorities play in the service delivery. They provide infrastructure and services that contribute to economic development at the local level (Ministry of Local Government _MOLG, Budget guidelines, 1999) and how lack of revenue affects this important role. This paper will go on to account for why there is the poor collection of revenue, looking at possible explanatory factors such as financial policies, management systems, decentralization of local authorities and the link there is between revenue collection and expenditure (Smoke (1991).
The primary hypothesis is that the challenges of revenue collection can be explained by a combination of factors including financial policies, management systems, decentralization of local authorities and the link there is between revenue and expenditure.
The methodology this research will employ include a review of secondary sources about history of Kakamega Municipal Council; history of local authority and systems of management; challenges facing local authorities in the implementation of the new constitution (Algak E-habari June 9, 2011, www.igfc.go.ug/corporate.php); the Local Authority Act Cap 265; other researches that have been done on local authorities; there is no information regarding revenue collection in Kakamega Municipal council.
There will be primary sources of data collection that will be
References: Bird R. M., (2000) Intergovernmental fiscal relations Universal principles, local applications working paper 2 International studies program. Georgia state university. Andrew young School policy studies. Budget Speech (June 1998). The budget speech for fiscal 1997/98. The ministry of finance, Nairobi Kenya. Devas, N., (2001) Building municipal Accountability; Local government Decision-making; Citizen Participation and local Accountability in Kenya and Uganda Dellinger, William (1994). Decentralization and its applications for urban service delivery. Washington DC USA. Elcock, Howard (1994), Local government policy and management. 3rd edition, London, Ronteldge. Fox, William (1985). “Intergovernmental fiscal relations in Egypt and Mobilization of local revenue”. University of Tennessee, USA. Freire, Maria (1998). Sub-national access to capital markets: the Latin American Experience. Washington DC World Bank. Kariuki (2003) Revenue enhancement in local authorities. Nairobi Kenya Councilors handbook (2002). Association of Local Government Authorities of Kenya: edition. Nairobi Kenya. Kenya Local Government Reform program (2002). LATF grand disbursement to all local authorities in Kenya. Nairobi Kenya. LATF (1998) Act No. 8/98. Government printer. Nairobi, Kenya Lawtton, Mcevitt (1996) Case studies in public service management MOLG (1998) Revenue assessment Guidelines for LAs.Government printers, Nairobi Kenya. Mwaila, M(1998 Management in Local authorities, Nairobi Kenya Mwiraria, D (2003) The budget speech 2003/2004 Nation Correspondent (2005) Council issues Nation Newspapers Ltd. Is 20th , Nairobi Odipo, AMR (1997) Financial sustainability of Algak; Nairobi Opi, M., st al (1984) Report on training needs in Local Government sector in Kenya. Nairobi. Poverty Reduction strategy paper (2001), Ministry of finance in Developing and planning, prepared by the people and government of Kenya, Nairobi. Smoke, Paul J. (1994). Local government Finance in Developing countries. The case of Kenya, Oxford University press, Nairobi. World Bank (1991) Urban financial management. Washington DC USA.